Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
Is the bearish outlook by Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON) a long term trend, or its it based on factors related to only short-term results?
Another question is if this is primarily a Monsanto issue and not an issue related to the overall agriculture sector, which could have a strong impact on companies like Potash Corp (NYSE:POT).
For Monsanto, the concerns from Goldman were raised in relationship to their SmartStax corn and RR2 soybean seed, which didn't receive the planting in acreage originally thought, which over the long term could have a dramatic downward drag on the stock.
Ongoing plantings around the world for major crops like corn, wheat, soybeans and rice keep pressure on agriculture prices, and unless that changes, it seems the specialty seeds of Monsanto may experience the same thing, depending on whether it's based on resistance to prices or to the genetically modified seed.
Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
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THE 2009 SEASON OF GRAIN PRODUCTION WAS POOR SECONDARY TO NOT ENOUGH HEAT UNITS TO PRODUCE A GOOD CROP OF CORN. MONSANTO IN PRODUCING PARASITIC RESISTANT AND INCREASED BUSHELS PER ACRE SEEDS SHOULD IMPROVE IN FARMING USE AND PROFIS THIS COMING FALL WORLD WIDE. AT 72 DOLLARS A SHARE WITH A HIGH PERCENTAGE OF THE SEED MARKET MONSANTO SHOULD DO WELL IN THE THIRD AND FOURTH QUARTERS OF 2009-FARMER DAVE
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