Replies to post #179827 on Biotech Values

[jbog]

Monsanto got slammed pretty good by both fitch and S&P so I wouldn't say their balance sheet was pristine. Being that Monsanto is going into the market right now a scoop up around $6 Billion of shares (10% of the company) tells me that they need these shares off the market to meet the eps numbers. They also risk buying at an inopportune time.

Their long rates don't seem like a bargain in my opinion.



$500 million in senior notes that mature in 2017 and bear interest at a rate of 1.150%,
$500 million in senior notes that mature in 2019 and bear interest at a rate of 2.125%,
$500 million in senior notes that mature in 2021 and bear interest at a rate of 2.750%,
$750 million in senior notes that mature in 2024 and bear interest at a rate of 3.375%,
$500 million in senior notes that mature in 2034 and bear interest at a rate of 4.200%,
$1 billion in senior notes that mature in 2044 and bear interest at a rate of 4.400%, and
$750 million in senior notes that mature in 2064 and bear interest at a rate of 4.700%.

[DewDiligence]

MON probably gained market share vs DD recently:

http://finance.yahoo.com/news/dupont-lowers-operating-earnings-outlook-200500672.html

Today DuPont announced that the company is revising its outlook for operating earnings per share for the second quarter and full year 2014, due primarily to lower than expected quarterly performance of its Agriculture and, to a lesser extent, Performance Chemicals segments.

Both companies are reporting soft corn sales, but MON—unlike DD—is making up the difference with strong soybean sales, especially in South America, where the Intacta product is having a very strong rollout.

(Note: It’s hard to make a direct timing comparison between MON and DD because they operate on different fiscal calendars. MON’s quarterly results announced this week were for the period ending 5/31/14, while DD’s lowered guidance is for the quarter ending 6/30/14.)