It’s Time To Sell One Of My Favorite Companies
I have to be very careful admitting this to my granola-crunching friends in Austin, but I genuinely love Monsanto (NYSE: MON). I always have.
I know these hippie environmentalists have issues with the agriculture giant, but regardless of whatever Beardo the Weirdo thinks, I can tell you from my stewardship of a few acres of farm ground that Monsanto products are top notch. We don’t only grow crops, we raise cattle, and that means our water quality is something I keep a close watch on. It’s good — I test it myself four times a year, which we’ve done since the 1960s. We’ve never been cleaner.
I’ve personally planted millions of Monsanto’s patented Genuity soybean seeds. You don’t realize how big a section of ground is until you start planting it in 30-foot wide rows…
I’ve also sprayed the young plants with Monsanto’s RoundUp (which doesn’t kill them but obliterates weeds) and then personally watched the meter on the combine register in the stratosphere as I harvested them. It’s a dusty operation each fall, as the soybeans are cut only an inch or so off the ground. But it’s also a good chance to take a census of the pheasant and quail population, which my bird-hunting dad and I consider far more important than the crop yield. (The old CPA was right when he always said you’ve got to have priorities in business.)
As my Game-Changing Stocks subscribers know, I’ve written favorably about Monsanto for one reason or another since my second issue almost six years ago, when shares were selling for about half of what they are today. I think it (in combination with our Deere [NYSE: DE] equipment) offers the best ag technology in the world, and that’s why Bayer (OTC: BAYRY) is making a more than $60 billion all-cash takeover bid. I’ve heard it’s the largest all-cash takeover offer on record: Five banks lent Bayer the money, and the loan does have some upward capability that could allow Bayer to sweeten the pot.
Monsanto, for its part, has rejected the offer as too low, and while the shares have popped, they haven’t skyrocketed, which in my view indicates that a significantly richer offer is not particularly likely. Still, it’s not every day you can double your money by investing in a behemoth like Monsanto.
But I’ll take it. Readers of my research are normally accustomed to seeing new investment ideas before they hit the mainstream media… and making money from them. While not every stock I cover soars… time and time again we cover little-known companies before they see big moves.
Lately, I’ve been telling readers of my Game-Changing Stocks newsletter about for months about eccentric billionaire Elon Musk’s latest project — and it could lead to incredible returns for early investors.
No, I’m not suggesting they invest in Tesla. Instead, it’s a revolutionary new technology that sits under the hood of the Tesla Model 3 that’s the real game-changer. I’m talking, of course, about the battery. And the little-known companies that have made this technology possible are set to blow the doors off the $1.3 trillion world of energy storage.
Bottom line, even in a market with heady valuations, there are always good buys. But with that in mind, I think it’s time sell Monsanto. If you own the stock, I suggest you do the same. It’s time to take our gains and search for greener pastures.
So while it’s time to get out of Monsanto, this next opportunity could be the biggest one you’ll see all year. To check out my report on this, simply go here.