Blog > Watchlist Ideas > Monsanto - King Of Seed

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dan.uyemura [31]

13-May-08

Monsanto - King Of Seed

With the current worldwide food shortage, there's only a handful of options farmers can do to product enough food to meet the demand:

Devote more farm land to cash crops
Use higher quality fertilizers on existing crops to achieve greater yield.
Use higher quality seeds to achieve greater yield.

With current USA subsidies on ethanol, US farmers are devoting less land to cash crops.

Fertilizer king, Potash Corp., and other 2nd tier players (AGU, IPI, etc) are reaping the benefits of the demand for high quality fertilizers.

That leaves us with buying genetically engineered seeds. Monsanto is the leader in this space, and it's share price, revenue, and earnings are all reflective of this.

With the demand for food only increasing in the near future, I feel Monsanto (and Potash) are both nice longer term investments.

Tagged Stocks: MON, POT

Posted at 19:51 in Watchlist Ideas | Permalink | Comments () | Top

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Blog Post

dan.uyemura [31]

13-May-08

Monsanto - King Of Seed

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