Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 29, 2013

Article Excerpt

MONSANTO CO., $105.63, New York symbol MON, sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. The company also sells weed- and pest-control products. The stock rose 4% this week after the company agreed to settle several lawsuits with DuPont Co. (New York symbol DD). Monsanto had sued DuPont for violating its patents. In response, DuPont launched an anti-trust lawsuit against Monsanto. Under the terms of the deal, Monsanto will license some of its genetically modified soybean seeds to DuPont. In return, DuPont will make four annual fixed royalty payments from 2014 to 2017 totalling $802 million. From 2018 to 2023, DuPont will pay royalties on a per-unit basis, subject to annual minimum amounts. These per-unit payments will total $950 million. The total value of the settlement—$1.75 billion—is equal to 86% of the $2.0 billion, or $3.79 a share, that Monsanto earned in the fiscal year ended August 31, 2012. Monsanto is a buy. Please make sure you…