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Sat Mar 5, 2016, 01:21 PM

Monsanto threatens to exit India if govt imposes cuts on GM royalties+ Monsanto: ‘Meaningful Risk,’

Goldman Sachs Says (2 articles)

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Mahyco Monsanto Biotech (India)(MMB), a joint venture with India’s Mahyco, licenses a gene that produces its own pesticide to a number of local seed companies in lieu of royalties and an upfront payment.

MMB also markets the seeds directly, though the local licensees together command 90% of the market.

Acting on complaints of local seeds companies that MMB was charging high fees, the farm ministry last year formed a committee to look into the matter.

The committee has now recommended about a 70% cut in royalty, or trait fee, that the seed companies pay to MMB, government sources said. The farm ministry is yet to take a decision on the committee’s recommendation.

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In a ruling last month, the Competition Commission of India, the antitrust regulator, said there were indications that MMB had abused its dominant position in the country and asked its director general to complete an investigation within two months.

The government-appointed committee has also recommended cutting Bt cotton seed prices to about 800 rupees for a packet of 400 grams. Currently Bt cotton seeds are being sold between 830 and 1100 rupees in different parts of the country.
http://www.hindustantimes.com/business/In%20a%20ruling%20last%20month,%20the%20Competition%20Commission%20of%20India,%20the%20antitrust%20regulator,%20said%20there%20were%20indications%20that%20MMB%20had%20abused%20its%20dominant%20position%20in%20the%20country%20and%20asked%20its%20director%20general%20to%20complete%20an%20investigation%20within%20two%20months.%20The%20government-appointed%20committee%20has%20also%20recommended%20cutting%20Bt%20cotton%20seed%20prices%20to%20about%20800%20rupees%20for%20a%20packet%20of%20400%20grams.%20Currently%20Bt%20cotton%20seeds%20are%20being%20sold%20between%20830%20and%201100%20rupees%20in%20different%20parts%20of%20the%20country.monsanto-threatens-to-exit-india-if-govt-imposes-cuts-on-gm-royalties/story-wM9mptHi2rCV6yVT1esbiO.html

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Monsanto: ‘Meaningful Risk,’ Goldman Sachs Says

Goldman Sachs analyst Robert Koort and team explain why the cut Monsanto (MON) to Sell from Neutral:

With farmer economics pinched, grain inventories elevated and recent company-acknowledged linkage between earnings growth rates and stagnant corn pricing (driven by oversupply), we believe there are substantial headwinds to Monsanto’s prior targeted 20%-plus EPS CAGR target for FY17-FY19…

The ongoing weakness in the over-supplied ag markets looks set to persist for the foreseeable future. In the past, Monsanto has been less tethered to corn pricing given its robust pipeline, the (now complete) evolution of the US ethanol market and its market leading trait penetration. These factors became more evident when the company warned on earnings this week and revised its FY2016 guidance downwards – causing an 8% equity erosion. While our prior FY2016 EPS estimate of $5.00 was below prior Monsanto guidance of $5.10-$5.60 and consensus of $5.15, the company has updated its guidance to $4.40-$5.10, reflecting tough current conditions. We expect this to moderate prior consensus expectations of a sharp snapback in growth in FY2017 and beyond. In our opinion, there is meaningful risk to the current FY2017 consensus EPS of $6.18 (GS $5.60) and Monsanto’s prior medium-term goal of reaching ~$10 EPS in FY2019…

We reduce our 12-month price target to $84 based on 15x our FY17E EPS, reflecting historical trough multiples. With 1% downside vs. 6% upside average for our Chemicals coverage, we downgrade Monsanto to Sell from Neutral.

http://blogs.barrons.com/stockstowatchtoday/2016/03/02/bad-news-from-monsanto-bad-news-for-dupont-dow-chemical/

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Reply Monsanto threatens to exit India if govt imposes cuts on GM royalties+ Monsanto: ‘Meaningful Risk,’ (Original post)
AmandaMatthews Mar 2016 OP
Grumpy Pickle Mar 2016 #1
uncledad Mar 2016 #2
AmandaMatthews Mar 2016 #3
uncledad Mar 2016 #4
AmandaMatthews Mar 2016 #5
Badsamm Mar 2016 #6
Badsamm Mar 2016 #7

Response to AmandaMatthews (Original post)

Sat Mar 5, 2016, 01:57 PM

1. I HATE Monsanto.

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Response to AmandaMatthews (Original post)

Sat Mar 5, 2016, 04:28 PM

2. Seen anything on the Dupont DOW merger ?

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Response to uncledad (Reply #2)

Tue Mar 8, 2016, 12:40 PM

3. BASF Is Weighing a Counterbid for Dupont

Investors may get a choice between two rival philosophies.

Germany’s BASF SE BFFAF 1.62% is planning to crash the merger plans of Dupont DD -2.74% and Dow Chemical DOW -1.55% , Bloomberg reported at the weekend.

The German company, which is the world’s biggest producer of chemicals, declined to comment on “speculation” to FORTUNE Monday, but the move, if confirmed, would give investors a radical alternative to the strategy thrashed out by the two U.S. companies under pressure from activist investors Nelson Peltz and Dan Loeb.

Under the plan unveiled by Dow and Dupont in December, the two companies would merge before breaking up into three companies focused respectively on agriculture, materials and ‘specialty’ areas like nutrition and health. The logic is that more focused companies can react more quickly and effectively to their markets’ needs, and strip out unnecessary costs more easily. The deal has attracted some criticism for focusing too much on short-term cash generation at the expense of long-term research.

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BASF chief executive Kurt Bock had told Bloomberg last month that he had considered a deal in agricultural chemicals before the announcement of the Dow-Dupont merger, but had decided against it. DuPont’s regulatory filings show its chairman and CEO met with “a large, publicly traded chemical company” in November, shortly before announcing its deal with Dow.

BASF’s shares fell in early trading in Europe Monday in reaction to the report, on the perception that a bidding war for DuPont could get expensive. For a start, a successful bid would force DuPont to pay a breakup fee of $1.9 billion to Dow, according to Bloomberg.

http://fortune.com/2016/03/07/basf-is-weighing-a-counterbid-for-dupont/

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Response to AmandaMatthews (Reply #3)

Tue Mar 8, 2016, 08:16 PM

4. AFAIK, it's a done deal. thanks

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Response to uncledad (Reply #4)

Tue Mar 8, 2016, 08:54 PM

5. You're welcome.

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Response to AmandaMatthews (Original post)

Sat Mar 12, 2016, 02:43 AM

6. Hypothetically speaking of course, if there was a a oolong revolution and I had to kill people

Monsanto employees would be in my top ten to bring justice. Just saying.

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Response to Badsamm (Reply #6)

Sat Mar 12, 2016, 02:46 AM

7. After reading my spell checked comment, I'm confused

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