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Monsanto Company (MON)

DON'T BUY
Constantly developing new seeds and tremendous new productivity for farmers globally. Great company. Too rich for his values at 20X this year's earnings and 18X next year’s.
BUY
Hasn’t owned it and has followed it. It’s worth a look. They missed expectations recently
DON'T BUY
Currently it is right on its model price. This has been a very overvalued name. Got caught up in the agriculture play. This one has $42.22 within all over it.
COMMENT
Provide seeds to farmers. Part of malaise with all ag stocks with the drop in consumption of fertilizers. Prefers fertilizer stocks.
SELL
Wonderful company but is in the wrong space right now. Agricultural products of all the basic materials are weak and weakening. Expects a large wheat and corn crop and soybeans are pretty good so is expecting more weakness. He is Short this one.
PAST TOP PICK
(A Top Pick June 16/08. Down 36.85%.) Got stopped out of this. Now seeing competition in their Round Up product with cheaper alternatives creating some risk to their revenue lines. Farmers in general are being a little more careful with the money they spend.
TOP PICK
Agricultural chemicals and seeds are very well placed in the world economy. Will come back well when the economy recovers. Biggest risk would be trade barriers.
HOLD
(Market Call Minute.) He prefers cheaper ways of getting at fertilizer in the chemical market.
TOP PICK
70% of every new dollar of income earned in India is being used to spend on food. This company has done a really good job of increasing agricultural yields. Working on drought resistant as well as moisture resistant corn, which will be important.
PARTIAL SELL
Big seed, herbicide company. Vulnerable to a correction.
DON'T BUY
Nowadays it's all about agriculture and momentum, but his model price is $53.22. A -56% differential. Stories are compelling, but he buys mispriced assets and this one does not qualify.
COMMENT
A growth stock. It can do very well. Have gotten past people's concerns on biotech seeds so growth prospects are spectacular. He couldn't buy as it is not trading at a value that makes sense to him.
BUY
Good company and well run. Agricultural industry has moved up because of a push from Asia. There is a growing need for agricultural products. This company has done very well over the last little while because of that and should continue to do well.
DON'T BUY
Trading at 44X trailing earnings and about 26 to 30 times earnings going forward. There is no question, it is a great company. If you see a pullback to $100-$110 you might want to take a partial position.
BUY
Seeds, herbicides and pesticides. In the right place as part of the food chain. The largest and leading company in this sector. Prefers Syngenta (SYT-N). (See notes further on.)
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