Gilford Securities Reiterates Sell Rating on Monsanto (MON)

Gilford Securities is out with a research report this afternoon, where it reiterates its Sell rating on Monsanto MON. The GS analysts noted that their four long-term concerns about the company remain unchanged: 1. The company's overdependence on glyphosate and glyphosate tolerance, at a time of increasing need for weed treatment to move away from that molecule3 2. The overdependence on corn, at a time when corn demand (ex-ethanol) has already started dropping, and is now held up entirely by ethanol 3. A peak in 2009 in Monsanto's pricing freedom, due to growing trait competition 4. The low-impact nature of the most promising candidates in its pipeline. As for valuation, the analysts remarked, “Cloud peak remains one of the more unhedged PRB names in 2011, leaving some potential upside in a rising price environment. However, we feel CLD shares are fully valued at current levels and are maintaining our Hold rating.”