Monsanto Company (MON)

TMFDeej (99.45) Submitted: 9/29/06 1:00 AM : Start Price: $47.14 MON Score: 157.58

Ethanol is making huge headlines, but the ethanol producers are already played out. The way to play this market is to buy shares in companies that are going to benefit. Corn use for ethanol in 12 months will reach 3.0 billion bushels equal to 27% of U.S. production. Corn prices are racing higher for good reason. Short of buying corn futures where are the plays? Buy stocks in companies that benefit from high corn prices. Monsanto has the largest market share of seed corn and the originator of GMO seed. Monsanto is quickly gaining market share. In addition I estimate corn acres need to increase 7 million acres next spring to keep up with the demand for ethanol. An increase of 7 million acres is plus 9%. Monsanto is the market leader in seed corn and demand is growing 9% annually. Monsanto is well above 52 its week low but it has further to go. Buy and hold through the summer of 2007.

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