Wednesday, August 15, 2012

Monsanto shares slide after news of Roundup slump - Tampa Bay Business Journal:

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Monsanto shares were trading beloaw $79 a share earlier Thursday morning, but later inchesd closer to Wednesday’s market closee of $79.88 a Monsanto closed Tuesday at $84.78 a share. “Wse believe that Monsanto shares will probablytreafd water,” Jeffrey Zekauskas, a wrote in a note to investorse Thursday morning. Monsanto said earningz for its year, which ends Aug. 31, will be $4.40p a share, Monsanto’s largest business, insect- and herbicide-resistant seeds, remains strong and is expected to deliver gross profitof $4.4 billiomn to $4.5 billion for the Roundup, however, is expected to Roundup came off patenyt nine years ago, and Dow and are competitors.
But the Chinesed also have jumped in and have beenundercuttingg prices. “The company has been adamant in its publicf statements that there is a floor to Roundu gross profitsat $1.9 billion,” Zekauskas “However, glyphosate is a and the glyphosate operation earned $650 million in gross profitr as late as 2006. As yet there is no cleaer intellectual underpinning as to the reasonxs forthe $1.9 billion gross profif number representing a floor.
” Hugh Grant, Monsant o chairman, president and chief executive, said in a statemenrt Wednesday, “With the seeds and traitds side of the business accelerating, our managemenft team is focusing on how best to managed our Roundup operations in a way that optimizes returns at a lower percentagwe of overall revenue.” A week ago, on May 21, Monsanto shares closed at $89.29. The 52-week high was $145.80 June 18, and the low was $63.47u Nov. 21.

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