Jun. 23, 2014, 12:44 PM
- Monsanto (MON +0.4%) recently explored a takeover of Swiss rival Syngenta (SYT +5.1%) in a potential $40B deal that would have allowed the U.S. firm to move its tax location to Switzerland, according to a Bloomberg report.
- The two companies held preliminary talks with advisers in recent months about a combination before SYT decided against negotiations, the report says; while talks are currently on hold, sources say the deal could be revived.
- MON jumped to a new all-time high at $123.99, and has since pulled back to ~$122.
Jun. 12, 2014, 3:31 PM
- A compromise deal to give EU member states the option of banning genetically modified crops won approval today from EU environment ministers, bringing the EU closer to ending years of deadlock on the controversial issue.
- The agreement is drawing criticism from both sides: Monsanto (MON +0.2%), who makes the only GMO crop grown in Europe, says it would continue its focus on other markets if the law is enacted as drafted, while the Green Party calls the deal "a Trojan horse" that would open the door to GMO crops across Europe.
- The European Commission hopes for final deal by year's end.
Jun. 6, 2014, 1:41 PM
May. 8, 2014, 4:57 PM
- Vermont becomes the first U.S. state to mandate labeling of foods made with genetically modified organisms, as Gov. Shumlin today signed a law that is widely expected to be challenged in court by food and agriculture companies.
- The law, set to take effect in July 2016, sets the stage for more than two dozen other states currently considering mandatory labeling of such GMO foods.
- BIO, a trade group whose members include Monsanto (MON) and Dow Chemical (DOW), says food costs for an average household would rise as much as $400/year due to mandatory labeling.
May. 5, 2014, 3:01 PM
- "The pain is in the rearview mirrors, and the sunny times" are in front, says Glenview's Larry Robbins, touting the HMO industry - in particular Humana (HUM +1.1%) and Wellpoint (WPT -0.2%) - at Ira Sohn. "There's an alarming outbreak of old people in the U.S. ... I'm not sure if people have noticed this."
- Going back to another idea he's made a lot of money with, Robbins continues to be a fan of Monsanto (MON +2.1%). "I wish all of our businesses were this high-quality." It can leverage the business, grow sales, do just about anything, he says. Latin American soy along is going to add more than $1 per share to earnings.
- Earlier conference coverage
Apr. 30, 2014, 5:44 PM
- Dow Chemical (DOW) receives preliminary U.S. regulatory approval to sell a new version of its 2,4-D herbicide aimed at stopping the spread of weeds no longer killed by Monsanto's (MON) Roundup.
- The EPA is proposing to allow Dow to market its Enlist Duo herbicide, which includes a new formulation of the 2,4-D chemical, a tougher product than some existing sprays that raised environmental and health concerns.
- The EPA's proposal is the agency's first major ruling on the product since Dow submitted it for review in 2011; the agency will take comments on the proposal over the next 30 days and evaluate them before issuing a final decision.
Apr. 17, 2014, 8:25 AM
- In a 28-2 vote, the Vermont Senate passes a bill that will require packaged food makers to label their products that contain genetically modified organisms ((GMOs)). If the State House of Representatives approves the Senates' changes to the version it passed before sending it the upper chamber, then the law will take effect July 1, 2016.
- Vermont will be the first U.S. state to institute such mandatory labeling.
- Predictably, food manufacturers oppose the bill saying GMOs are ubiquitous on grocery store shelves. The most popular GMO crops are corn, soybeans and canola which are found in almost every kind of packaged food. They say that GMOs are safe and the law, if enacted, will add unnecessary costs and complications for farmers and the food industry.
- Consumer groups believe more safety testing needs to be done by independent researchers.
- Vermont's bill would make it illegal to label a food product containing GMOs as "natural" or "all natural".
- (MON) (PG)
- ETFs: PBJ
Apr. 11, 2014, 6:06 PM
- China’s rejection of genetically modified corn is becoming a big problem for exporters: In the first full tally of the impact, a U.S. grain industry group says the rejected shipments have totaled ~1.45M metric tons, far more than the 545K tons China has reported and the 900K tons that has circulated in news media.
- The rejected shipments have cost grain companies $427M from lost sales and reduced prices for China-bound shipments that must be resold elsewhere, and has affected the price of corn and soybeans, resulting in hundreds of millions of dollars in losses for farmers.
- Big seed companies such as Syngenta (SYT), Monsanto (MON) and DuPont (DD) generally are aligned with traders such as Cargill and ADM in the desire to grow and sell as much grain as possible, but now the two groups are debating who should bear the costs for the rejected shipments.
- ETFs: DBA, CORN, RJA, SOYB, DAG, JJA, RGRA, AGA, AGF, USAG, FUD, UAG, DIRT, TAGS, ADZ
Apr. 3, 2014, 8:20 AM
- Monsanto (MON) +1.3% premarket after earning an upgrade to Overweight from Neutral with a $125 price target, up from $115, at J.P. Morgan, which cites a "reasonable possibility" that activist investors could get involved with the company though he has no knowledge of any such intentions.
- Analyst Jeffrey Zekauskas sees several opportunities for value creation at MON, including increasing balance sheet leverage and splitting the company into parts; he notes MON's ag productivity business (Round Up herbicides) is separable from its Seeds and Genomics segment.
- MON reported FQ2 earnings yesterday that topped analyst forecasts but offered flat FY 2014 guidance.
Apr. 2, 2014, 2:29 PM
- Although the USDA projects that U.S. farm acres devoted to corn will decline 4% to 91.7M acres this year, Monsanto (MON +1.2%) anticipates record sales volume in its global corn business this year, partially because of growth in Eastern Europe, company president Begemann says in today's earnings conference call.
- The region is a "30M acre market," and MON has doubled its business there over the last few years, Begemann says.
- MON says its corn portfolio is expanding globally, helping sales of corn seed and traits rise 4% to $3.4B in FQ2, and it sees opportunities for net sales growth of $1B in the business in the next five years due to global demand.
- Analysts' reaction to the quarter was mixed, pointing to weaker than expected growth in herbicide earnings and some disappointment that MON did not raise its guidance.
Apr. 2, 2014, 8:47 AM
- Monsanto (MON) +0.8% premarket after reporting a 13% Y/Y gain in FQ2 earnings, thanks to continued strength in its soybean seed sales as well as improved margins.
- Confirms earlier guidance for FY 2014, seeing EPS of $5.00-$5.20 vs. $5.25 analyst consensus estimate; expects a strong H2 of its fiscal year, with a significantly smaller loss in its Q4 than in recent years.
- Total Seeds and Genomics sales rose 6.9% to $4.65B; growth in the segment represents nearly 80% of MON's overall gross profit increase in the quarter.
- Corn seed and traits sales, which account for most of the segment's revenue, rose 4.1%, while soybean seed and traits sales jumped 21%.
- Sales in the agricultural productivity business, which consists of crop-protection products and herbicide, grew 5.2% to $1.18B.
- Gross margin grew to 59.1% from 56.1%, as product costs edged down 0.7%.
Apr. 2, 2014, 8:02 AM
Apr. 2, 2014, 12:05 AM
Apr. 1, 2014, 5:30 PM
Mar. 28, 2014, 2:45 PM
- Monsanto (MON +1.2%) is upgraded to Buy from Hold with a $130 price target, up from $106, at Miller Tabak, noting that the Street is bracing for limited-to-no upside to FY 2014 guidance because of uncertainty over the impact of tightening credit on Ukrainian seed volumes going forward and Brazilian weather impact on Intacta supply availability for next season.
- The firm sees a positive shift in underlying agriculture macro trends enabling MON to bridge the earnings hurdle between recent multi-year highs, Roundup margins, strong seed prices and the next burst of material margin uplift from Intacta and IFS products in FY 2016.
Mar. 16, 2014, 4:53 AM
- France's government has banned Monsanto's (MON) MON 810 genetically modified maize even though the country's highest court has twice struck down similar measures.
- The agriculture ministry timed the latest diktat to prevent any sowing of the maize ahead of a debate on April 10 of a draft law that would ban genetically modified organisms.
- While France would like to ban GMOs in the EU, the bloc is divided on the issue.
MON vs. ETF Alternatives
Monsanto Co is a provider of agricultural products for farmers. The Company offers corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds. Its segments are Seeds and Genomics and Agricultural Productivity.
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