The annual charts have been updated also. CLICK HERE to view.
Maui Land and Pineapple (MLP) 10-02-09
Calavo Growers (CVGW) 10-02-09
Alexander and Baldwin (ALEX) 10-02-09
Monsanto (MON) 10-02-09
Syngenta (SYT) 10-02-09
DUPONT E I DE NEM (DD) 10-02-09
E.I. du Pont de Nemours, or DuPont ( DD), is one of the company’s most profitable while being the least cyclical and requiring the lowest amount of capital, according to Soleil analyst Mark Gulley. With earnings growth of 15% annually and its percentage of total earnings projected to be in the 40% to 45% range in 2011, Gulley wouldn’t be surprised if the company elected to divest underperforming businesses to further concentrate on seeds where it competes with Monsanto ( MON) and Syngenta ( SYT).
DuPont takes a different approach to the business than Monsanto, which Gulley sees as the company’s toughest competition. Pioneer’s "right seed for the right acre" approach encourages farmers to cater purchases to specific crop needs while Monsanto appeals to "profit-maximizing" farmers who are willing to pay more for seeds that protect against a variety of stresses.
Uncertainties regarding regulations and pricing remain risks to seed companies. Lower farm incomes in 2009 will make farmers unlikely to stomach higher seed prices. While prices on existing hybrids will likely remain unchanged, Pioneer said mix effect should lift the average selling price for corn by 5% and soy as much as 3%.
At a recent investor conference, Pioneer presented its goals to grow sales 50% and double earnings for the period from 2008 to 2013. "While we appreciate DuPont’s aggressive goals through 2013, it will be difficult to keep up with the pace set by Monsanto," Gulley said.
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The annual charts have been updated also. CLICK HERE to view.
Maui Land and Pineapple (MLP) 09-25-09
Calavo Growers (CVGW) 09-25-09
Alexander and Baldwin (ALEX) 09-25-09
iPath DJ AIG Sugar TR Sub-Idx ETN (SGG) 09-25-09
Monsanto (MON) 09-25-09
Syngenta (SYT) 09-25-09
The annual charts have been updated also. CLICK HERE to view.
Maui Land and Pineapple (MLP) 09-18-09
Calavo Growers (CVGW) 09-18-09
Alexander and Baldwin (ALEX) 09-18-09
iPath DJ AIG Sugar TR Sub-Idx ETN (SGG) 09-18-09
Monsanto (MON) 09-18-09
Syngenta (SYT) 09-18-09
The annual charts have been updated also. CLICK HERE to view.
Maui Land and Pineapple (MLP) 09-11-09
Calavo Growers (CVGW) 09-11-09
Alexander and Baldwin (ALEX) 09-11-09
iPath DJ AIG Sugar TR Sub-Idx ETN (SGG) 09-11-09
Monsanto (MON) 09-11-09
Syngenta (SYT) 09-11-09
It’s becoming increasingly harder to figure out whether Monsanto (NYSE: MON) is a bargain or a value trap. Yesterday, the agriculture giant announced less-than-stellar guidance for its 2010 fiscal year, which started at the beginning of the month.
It’s really a tale of two product lines for Monsanto. The seed and trait business is growing and competing well against — and sometimes with — DuPont (NYSE: DD), Dow Chemical (NYSE: DOW), and Syngenta (NYSE: SYT).
Its Roundup product, on the other hand, is headed in the wrong direction. Once a cash cow, Roundup now faces generic competition, and a glut of chemical herbicides in the supply chain is pushing down prices. Unlike drug companies such as Pfizer (NYSE: PFE) and Merck (NYSE: MRK), which can pretty much kiss off most of their sales once generic competition starts, Monsanto does expect to bring in $650 million to $750 million in gross profits from Roundup in the coming year. Still that’s a long drop from the nearly $2 billion in gross profits that the herbicide brought in during fiscal 2008.
In a couple of years, it’s not going to matter much: By 2012, the company expects that seeds and licensed traits will make up 85% of the company’s total gross profit. But in the meantime, the drop is hurting the bottom line.
Earnings per share, after adding back restructuring charges, are expected to come in between $3.10 to $3.30, a sharp decline from the $4.40 or so that’s expected from the recently completed year. Trading at a forward price-to-earnings ratio of more than 24, Monsanto is a little cheaper than we’ve seen in the past, but it doesn’t leave investors much breathing room, if Roundup sales continue to fall faster than expected.