Monsanto (NYSE:MON) are taking a big hit again today as what appears to be ongoing concerns over genetically modified corn seed brand SmartStax.
Farmers have been gradually moving away from some Monsanto seed in general because of the way the company marketed them, as well as high prices.
Major competitor DuPont (NSYE:DD) has also successfully embedded the question in the minds of farmers over whether or not the extra traits of the seed is worth the extra cost, implying their seed, while having less traits, still produces well for farmers.
Developing new pipelines is becoming a challenge for Monsanto because of legal issues as well as the economic environment we're in.
But with corn prices rising during the summer, if farmers didn't acquire the seed strongly when margins aid the sales, it has to be extremely concerning for Monsanto on how to position themselves going forward.
If SmartStax hasn't yielded the sales and earnings expected, as a number of analysts believe, Monsanto will have to downwardly revise their profit targets, which the market now seems to be pricing into the shares at this time.
Monsanto dropped to $48.03, down $5.04, or 9.50 percent at 2:11 PM EDT.
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