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Monsanto (NYSE:MON) issued its Q4 and full-year results this morning, and whilst the earnings results are disappointing, its share price jumped 3.8% from 106.14 to 110.00 within 15 minutes following the opening bell. The price has been declining over the past 45 minutes and it seems to be headed back toward the 107.74 mark at which it closed yesterday. We’ll check on it again when I bring this article to a close.
Monsanto is a company that some people love to hate and others hate to love. It advertises that, “Our vision for sustainable agriculture strives to meet the needs of a growing population, to protect and preserve this planet we all call home, and to help improve lives everywhere.”
Translated into the vernacular, that means that Monsanto is the world leader in Genetically Modified Organisms (GMO), an endeavor that not all people favor. In fact, it is an endeavor that many, many people are passionately against. In other words, if you are a tree-hugger, you probably like Monsanto from an philosophical point of view. If, on the other hand, you are not, you probably oppose Monsanto from an ethical perspective.
If you are an investor, you probably need to stay focused on the financial issues. Therein, however, is where lies the rub. You see, there is some real concern about how Monsanto is spending investor dollars, generating increased revenues, but producing a loss per share of 27 cents. On the brighter side, EPS for the year was $5.23.
Monsanto is outstanding in its field, like many of the farmers who use their GMOs when they are out standing in their fields. A number of U.S. states are attempting to introduce legislation that requires GMO products, or items containing them, to be so identified with appropriate labeling. Monsanto is spending millions to stop those bills before they become laws.
- The St. Louis Business Journal (Monsanto is based in St. Louis) reported this morning that the company is spending $1.5 million to defeat a Measure 92 in Oregon. The measure would require GMOs to be labeled as “Genetically Engineered.”
- On 30 September Colorado Public Radio reported that Monsanto was spending $4.7 million to prevent a similar initiative in Colorado.
Monsanto’s public declaration says, “Integrity is the foundation for all that we do. Integrity includes honesty, decency, consistency, and courage. Building on those values, we are committed to: Dialogue. We will listen carefully to diverse points of view and engage in thoughtful dialogue. We will broaden our understanding of issues in order to better address the needs and concerns of society and each other.”
So here is my question. If Monsanto has such a passion for integrity and dialogue, why is it spending millions of dollars to keep the public oblivious to their GMOs? If what a company produces is beneficial, wouldn’t the company want to advertise that product? There is something wrong with this picture. It’s definitely a company I’m not interested in investing in. It doesn’t matter whether I’m for them or against them. I just don’t trust them.
- Net sales for Q4 increased from $2.2 billion to $2.6 billion
- Net sales for the year increased from $14.8 billion to $15.8 billion
- Net income for Q4 increased from ($249 million) to ($156 million)
- Net income for FY2014 increased from $2.5 billion to $2.7 billion
As promised earlier, the Monsanto share price has continued to decline and is now down 0.02% from yesterday’s close of 107.74. Expect this trend to continue throughout the day. Monsanto opened the year at 116.31 and reached a high of 126.73 on 25 June. The stock is trading below its 50-day moving average.
