Monsanto (NYSE:MON) just released impressive earnings. the share price has been on quite a tear for the past six months. I have called for an increased dividend to confirm managements belief of a strong future.
Now listen to the folks a FT “Lex” team. They have a few questions. The Lex Team has raised concerns about Monsanto’s premium valuation (relative to DuPont and Syngenta). The concerns arise from material legal disputes with customers in Brazil, stagnant R&D spending and M&A activity.
I have been known to admire a few Black Swans and this time the gaggle seems to read FT. This is an excellent example of long tail risk which can just change the game over night and supposedly surprise everyone.