Could Be a Good Time To Buy Monsanto Stock?

Discussion in 'Stock Market Forum' started by Rainman, Aug 14, 2015.

  1. Rainman

    Rainman Senior Investor

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    Monsanto could be one of the most hated companies but it appears like there's some money to be made . . .

    Late in June Monsanto expressed an interest in buying Sygenta. Since we've heard nothing from either company since then the assumption we can make is that they are still "talking." The acquisition [should the deal go through] would give the new company control of over 30% of the world's seed supply. Should they dominate the market thusly beating the competition will be much easier so what we are looking at [in the near future] is massive growth for Monsanto.
     
  2. petesede

    petesede Guest

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    Yeah, it is a great contrarian play. The best part is that most the hate is misdirected by uneducated people who don´t know the history of GMOs. They read ´enticement articles´ and suddenly are experts because they believe everything they read by someone who already has strong opinions.

    In any event, it is a great business, and with Republicans in control of congress, it is very unlikely and legal changes will be made any time soon.
     
  3. JoshPosh

    JoshPosh Guest

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    There are studies that show there are health risk to eating GMO foods, and Monsantos is the ones supplying the GMO seeds. For them to come back and say that their data says otherwise is a joke. Other countries have banned the sale of Monsantos seeds. I think it is a matter of time before the American public finally take off the ignorant goggles and start looking at them and scrutinizing their claims as "wanting to feed the world", when in actuality they are feeding their wallets.

    It's a matter of time before their stock go down.
     
  4. crimsonghost747

    crimsonghost747 Senior Investor

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    Quite a risky bet in my opinion. It's certainly a big company that has been doing well in the past but I'm a bit worried about their size going against them when it comes to the public and political opinion. ie. "ohh they make so much money and they are evil. They just want to destroy the world for their own profit" type of stuff. That, plus a couple of governments already banning some of their products, could be poison in the long run.
     
  5. My401K

    My401K Well-Known Member

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    Actually I would play the other end of this gamble. Anyone that has been to a major US grocery store cannot help but notice the boom in organic based products and new companies dedicated to organic ingredients. As they say in Hollywood controversy maybe a good thing to bring some attention... but in this case I think that there could be a better growth potential with one of these new start up companies. Hain Celestial Group (HAIN) has had some modest returns. General Mills (GIS) looks like a nice conservative bet. From a long term stand point this is the sort of trend that is desired, it is far from a new start up I know, but still more attractive then Monsanto.
     
  6. petesede

    petesede Guest

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    yeah, like that store chain that was just caught doing inaccurate measurements on 90 of 90 products tested. In some cases, they were saying stuff weighed double what it actually did.

    I was in Costa rica one time at a pinapple farm. There was this huge pile of pinapples being loaded into trucks. There was a line of about 12 trucks waiting to be be filled ( by hand). 2 of the trucks were a different color. I asked my friend why those two trucks were a different color.. he said´ oh, those are the organic pinapples´. Of course they were being filled from the same pile of pinapples as the other trucks, but int he USA, they sold for double.
     
  7. crimsonghost747

    crimsonghost747 Senior Investor

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    hahaha what a great story! :D I'm not surprised to hear this stuff happening and even though these things are controlled in the EU I'm still sure that sometimes this stuff happens and no one blinks an eye... especially in cases like this where it's products imported from outside the EU.
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm no stranger to this one, or similar companies like DuPont and Potash. It has pulled back recently...
     
  9. petesede

    petesede Guest

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    In Costa Rica, the inspectors were just people hired from the local villages. It helps that the pinnapple fields in northern costa rica are very isolated, so it is not like you could ever sneak a real inspection team in and the living conditions were horrible for any ´civilized´ person to live their. That led basically to my reason for being there, it was basically a slave state with young men from Nicaragua working the fields like dogs in almost inhumane conditions. but again, it was so isolated and difficult to get to, that they were warned before anyone could see it happening.

    In africa, they called them ´blood diamonds´.. in Costa Rica, they were ´blood pinnapples´... but hey, americans gotta have their organic fruit, right?
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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