The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.
Thursday, April 7, 2011
Stock Idea: Monsanto Co. (MON, $69.00)
(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)
Monsanto Co. (MON) produces agricultural products for farmers. "We think investors should use today’s ~6% pullback as a buying opportunity." -- Citi Investment Research and Analysis, 04/07/11
Projected consensus earnings per share (EPS) growth is 18.7%, 18.2% and 12.7% for fiscal years 2011 through 2013. The PE is 24 and the dividend is 1.6%.
The stock has recently traded in the $66-$75 area. With the strength in the earnings projections, I anticipate the stock returning to a former, longer-term trading range of $69 to $90. Based on the likelihood of the stock repeating these trading ranges, Monsant0 presents an opportunity for short-term traders and for medium-term growth investors.
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The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.
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