A Closer Look at Monsanto

Robert Hsu, September 27, 2007

For awhile now, I've been quite taken with Brazil's status as an emerging market. As always, I'm constantly searching for new investment opportunities that not only will benefit me, but you as well. Lately, I've been doing a little light reading on a couple of Brazilian companies that have demonstrated tremendous growth over the past year. One of these companies is Brazil's agricultural giant, Monsanto.

Let's take a closer look at what my friend Louis Navellier has to say about Monsanto...

I'll give you a great example of a large-cap growth stock that's benefiting from the current market, especially the weak dollar. That stock is Monsanto (MON). The St. Louis-based company is one of the world's leading multinational agriculture biotech stocks, and Monsanto loves the weaker dollar. As you might imagine, the company's business is booming. By my estimate, earnings-per-share will be up about 50% this year.

The good news is that I don't see Monsanto slowing down anytime soon. In fact, yesterday Monsanto predicted that it could triple the amount of farming acres planted worldwide with its genetically engineered seeds. Think about that!

According to the Biotechnology Industry Organization, biotech crop acreage increased 13% between 2005 and 2006. Business Week notes:

Begemann said Brazil will be a hot spot for sales growth after Monsanto's purchase of the Agroeste seed company. The acquisition boosts Monsanto's market share in Brazil to 40 percent. That will give Monsanto the outlets it needs to introduce new strains of crops like YieldGard Corn Borer, he said. Monsanto has increasingly invested in "advanced breeding" techniques to develop new crops without genetic engineering. Instead, the company uses gene markers and advanced computers to rapidly breed plants with desirable traits.

To view Louis' full article, click on this link.

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