Much of the financial rewards for the stock market from Monsanto emanate from its agricultural chemicals. The company has been able to build its frontier seed developments around one of its main chemical pesticides, Roundup. This brand is one of the most widely used herbicides in the world, and holds its own in the face of tough generic competition. Monsanto has proved its brand marketing muscle with this brand, though some of its top technologies relate to the business of genetically engineered seeds.
Some stock market observers worry about the continuing pressure Monsanto faces from environmental groups and regulators in some countries and regions of the world. There are questions about the long term effects of using some of the company’s products. Others question the ethics of linking new seed development with Roundup. However, stock market investors should know that Monsanto is careful to operate within the boundaries of the law.
The stock market can look forward to enormous business expansion from this company. More than half its business is from Latin America, leaving large swathes of agriculture in China, India, and Africa untapped as yet. Most agricultural input suppliers are in the process of consolidation, and Monsanto is certainly an attractive option for any corporate entity which would like to have a sound base in agriculture. The development of industrial products such as fuel and plastic from crops makes Monsanto’s future full of promise.