Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 9, 2016

Article Excerpt

MONSANTO CO., $106.78, New York symbol MON, develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also makes weed- and pest-control products. This week, German chemical and pharmaceutical maker Bayer AG increased its all-cash takeover offer to $127.50 a share from $125.00. The new offer also includes a $1.5-billion breakup fee that Bayer will pay to Monsanto if Bayer can’t complete the purchase. That fee is equal to 3% of Monsanto’s $47.4 billion market cap. The company has yet to respond to the new bid. Monsanto’s stock continues to trade well below Bayer’s offer. That’s because investors doubt regulators in the U.S. and Europe will approve the takeover. In addition, it’s unclear that Bayer can secure the loans it needs to buy Monsanto. OUR RECOMMENDATION: Monsanto is still a buy. Monsanto recent coverage Hotline for August 26, 2016 August 2016 issue HEWLETT-PACKARD ENTERPRISE CO., $20.92, New York symbol HPE, sells computing services and products, such as servers…