Investing in Monsanto
So would it be good to invest in Monsanto? To find out, you need to know information about the company and how it is performing in the mid-2020s. If you want to stay on top of the company, stay with us and also find out how to invest in Monsanto.
What is Monsanto?
Monsanto, also known as Monsanto Company, is a multinational company founded in 1901. It is dedicated to the agro-industrial sector, where they mainly produce herbicides and work in seed genetics. They also work with agrochemicals and biotechnology for agriculture.
This company is of American origin and is recognized for its famous herbicide brand “Roundup”. With more than 100 years of experience in the sector, in 2016 Monsanto agreed to be acquired by the Bayer Group for a total of 66 billion dollars.
This process was not carried out until 2018, because it was necessary for the transfer to be approved by both the Canadian and U.S. authorities. But the sale has not been completed, so Monsanto continues to retain its name.
If you ask yourself, what is Bayer’s interest in Monsanto? Well, it is mainly to be one of the best and biggest suppliers of seeds and crop protection products. However, this whole legal process looks like it will take a few years.
Monsanto was trading on the stock exchange until 2018 under the acronym MON. What happened? As it is now owned by Bayer, Monsanto shares are not for sale on any stock index, at least not until the legal situation discussed above is resolved.
Monsanto was listed on the Nasdaq and the S&P 500 index, having a net income of $255 million in 2005. For the year 2015, Monsanto’s share price was total sales revenue of $15 billion, its last period on a standalone basis.
Currently, Bayer sells the famous Roundup, a glyphosate pesticide from Monsanto’s subsidiary, obtaining high profits of 43,000 and 44,000 million euros, and a loss of 2.5% due to the problems caused by this product.
Before Bayer decided to acquire the Monsanto shares for $128 each, the company had a bad reputation for the manufacture of its products, as well as legal problems from farmers.
The Bayer Group intends to clear Monsanto’s name and commercialize its products by improving their quality and repairing the anomalies in their formulas that cause crop damage. However, by 2020 Bayer has had to deal with legal problems and loss of money because of Monsanto.
Buying Monsanto shares: Advantages
Monsanto does not currently sell its stocks on the stock exchange, since every Monsanto share was bought by Bayer. Even so, we must recognize that:
- Monsanto accounts for about 90% of seed sales worldwide.
- It has been involved in agrochemical production and seed engineering for more than 100 years.
Buying Monsanto shares: Disadvantages
- Monsanto has had many irregularities as a company long before its shares were acquired by Bayer.
- The commercialization of Monsanto’s products has brought serious financial and legal problems to the Bayer Group.
How to buy Monsanto shares
How to buy Monsanto shares? Undoubtedly the best way is through a broker. It consists of a safe and reliable platform where you can invest your capital by buying shares of various companies. The most recommended are:
Now, if you’re wondering: can I really buy Monsanto stock? Unfortunately, the answer is no. Instead, you can buy shares of Bayer, who currently owns it. To do so, just follow the steps below:
- Choose the broker of your choice.
- Create an account, and verify it.
- Log in and transfer the amount you wish to invest in shares.
- Search for the company in which you want to become a shareholder.
- Click on “Buy” and indicate the number of shares of the company you wish to purchase.
- Now click on “Invest” and choose the price of your choice and the duration of the order.
- Wait a few minutes to confirm the operation. Done! You now have shares in the company of your choice.
We have already seen all the problems that a company with a great track record has been causing in 2020 to Bayer, its owner. So some of our recommendations are:
- Wait a little longer to see how Monsanto evolves as a subsidiary of the Bayer Group.
- Consult with expert brokers on whether it is advisable to invest in Monsanto.
- Monsanto’s stock price as of 2018 was $128, check the experience of its total investor (Bayer) and analyze whether it is worth buying stocks of this company.
- Once the legal issues surrounding the Monsanto acquisition are finalized, analyze its economic liquidity and if the company re-enters the stock market as a subdivision of Bayer, check how much a Monsanto share is worth and see if it is worth investing in or not.
- In case Bayer is able to revamp Monsanto’s business model and control all kinds of irregularities in the company, you can check Monsanto’s stock price and consult with a broker to see if it is a good option to buy Monsanto stock at the established price.
- Remember that the best way to buy Monsanto shares is through a broker, choose one that suits your needs and that is safe and reliable.