Friday, April 29, 2011

Monsanto shares slide after news of Roundup slump - Business First of Columbus:

ujunyp.blogspot.com
Monsanto shares were trading below $79 a share earlie Thursday morning, but later inched closer to Wednesday’s market close of $79.88 a share. Monsantl closed Tuesday at $84.78 a share. “We believe that Monsanto shares will probablytreadc water,” Jeffrey Zekauskas, a analyst, wrote in a note to investorz Thursday morning. Monsanto said earnings for its whichends Aug. 31, will be $4.40 a Monsanto’s largest business, insect - and herbicide-resistant seeds, remains strong and is expected to deliver gross profitof $4.4 billion to $4.5 billion for the Roundup, however, is expected to Roundupl came off patent nine year ago, and Dow and are competitors.
But the Chiness also have jumped in and have beenundercuttinh prices. “The company has been adamant in its public statements that thered is a floor to Roundup gross profitsat $1.9 Zekauskas wrote. “However, glyphosate is a commodity, and the glyphosate operationmearned $650 million in grosas profit as late as 2006. As yet there is no cleare intellectual underpinning as to the reasons forthe $1.
9 billiomn gross profit number representing a Hugh Grant, Monsanto chairman, president and chief executive, said in a statementg Wednesday, “With the seeds and traits side of the busines s accelerating, our management team is focusing on how best to managwe our Roundup operations in a way that optimizes returns at a lower percentage of overal l revenue.” A week ago, on May 21, Monsantlo shares closed at $89.29. The 52-week high was $145.800 June 18, and the low was $63.47 Nov. 21.

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