Investors Dump Monsanto Shares – Friday April 16

Monsanto was one of today’s worst performing stocks, down 0.6% to $65.21 on DJ.

Syngenta SYT Earnings fell short as well, a reported first quarter 2010 revenues of $3.5 billion, just slightly lower than estimates of $3.574 billion. That’s -3% at today’s exchange rate, but -8% at a constant exchange rate to the first quarter of 2009. sales of glyphospate herbicides like Monsanto’s Roundup were lower than a year ago.

Like Monsanto Corp. (MON), sales of glyphospate herbicides like Monsanto’s Roundup were lower than a year ago. In Sygenta’s case by almost $100 million dollars, a drop of 34% at constant exchange rates.

With the decreasing availability of arable land, water shortages, downstream rivers drying up, and even climate change, the longer-term outlook for Ag-chemical companies is bleak.

The only question is how long does an investor want to or have to wait to realize returns. Monsanto is trying to cut its dependence on Roundup and put more attention on selling seeds. That’s a gamble, and could keep the stock price down. Syngenta seems to be taking the ‘wait-and-see’ approach, banking on higher revenues as the planting season in the northern hemisphere gets into high gear.

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