Monsanto Update

Monsanto (NYSE: MON): We originally recommended on April 30/07 at $60.30. Closed Thursday at $90.03 (all prices in U.S. dollars).

Last month the company announced second-quarter earnings of $1.09 billion ($1.97 per share), down slightly from $1.13 billion ($2.02 per share) last year. However, excluding one-time items, earnings per share for on-going business were $2.16, up from $1.77 last year. Pretty good numbers in a tough economy!

I originally recommended this stock in April 2007 at $60.30 and last mentioned it as part of an agricultural basket in September 2008 when it was trading at $118.41. The stock is currently trading in the $90 range and I expect it to break $100 before this run is over. The 52-week high was $145.80, which was reached last June, and I believe we could go there again. I just bought some more for one of my accounts and I consider it a key holding for the next 12 months.

The stock held up very well through the meltdown and the agricultural production story is still intact. Food consumption is only down 3% but the stock has been punished along with all the other fertilizer stocks like Potash Corp. (POT). All these stocks have begun to rebound and I think it's a sure bet that they will continue to do so.