Replies to post #149002 on Biotech Values

[DewDiligence]

French study of Monsanto corn draws skepticism: #msg-79736095.

[DewDiligence]

SYT offers to acquire Belgian company, Devgen, for rice and RNAi know-how:

http://finance.yahoo.com/news/syngenta-announces-public-offer-devgen-050100432.html

Syngenta today announced a bid for the Belgian company Devgen, a global leader in hybrid rice and RNAi technology. Completion of the transaction would enable Syngenta to combine its leading crop protection portfolio with Devgen's best-in-class rice hybrids and broad germplasm diversity. Devgen also brings proven expertise in RNAi-based insect control, for which the two companies signed a global license and research agreement to develop spray applications in May.

[dav1234]

The Supreme Court agrees to hear an Indiana farmer's appeal that challenges the patent rights of Monsanto's (MON) Roundup Ready seeds. MON, whose genetically modified seeds produce crops resistant to herbicide, has required farmers to use the patented seeds only for a single crop and not save the second-generation seeds from the harvest.

[DewDiligence]

A regular poster on iHub suggests shorting MON, which I think is reckless (#msg-80734555, #msg- 80734710). MON just completed FY2012 in which (non-GAAP) EPS grew 25% vs FY2011, and MON simultaneously issued (non-GAAP) EPS guidance for FY2013* of $4.18-4.32, which represents 15% growth vs FY2012 at the midpoint of the range. Clearly, MON is on a strong growth trajectory, and this trajectory could last for many years to come.

Why? Because I’ve yet to hear anyone tell me how the world will feed its growing population without the incremental yield generated by biotechnology. MON has far and away the best pipeline in the ag-biotech industry and is the “purest” play in the sector.

The hatred MON faces from Luddites and some politicians is old hat, and it won’t drastically affect MON’s business going forward, IMO. The world’s population is growing; people with newfound disposable income are eating more food and, specifically, more protein, which greatly increases the demand such crops as corn and soybeans—MON’s two most important crops—in order to feed the animals produced for meat.

All told, I don’t think there’s a better stock in the entire market to benefit long-term from The Global Demographic Tailwind.


FY4Q12 Reference materials (from 10/3/12)

Financial PR:
http://monsanto.mediaroom.com/2012-10-03-Monsanto-Companys-Global-Performance-Drives-25-Percent-2012-Ongoing-Earnings-Per-Share-Growth-Company-Underscores-Mid-Teens-Ongoing-Earnings-Per-Share-Growth-Opportunity-In-2013

CC slides:
http://www.monsanto.com/investors/Documents/2012/Q4FY12%20Earnings%20Presentation.pdf

*Ending 8/31/13.