Monsanto

[lukethedrifter]

So, I grew up on Monsanto money. My dad retired and collects a pension from Monsanto.
A couple of years ago he gave his children (of which I am one) around 2k worth of Monsanto stock which then became Pfizer stock which spun off 5 shares of Monsanto at $5 each. I traded in the Pfizer and left the 25 bucks of Monsanto alone. 3-4 years after a split it's worth around $1200 bucks. Not bad, eh?

The problem, of course, is that I am appalled by just about everything Monsanto does.

From May 2008 Vanity Fair

Monsanto’s Harvest of Fear
Monsanto already dominates America’s food chain with its genetically modified seeds. Now it has targeted milk production. Just as frightening as the corporation’s tactics–ruthless legal battles against small farmers–is its decades-long history of toxic contamination.

[TabascoElvis]

So, I grew up on Monsanto money. My dad retired and collects a pension from Monsanto.
A couple of years ago he gave his children (of which I am one) around 2k worth of Monsanto stock which then became Pfizer stock which spun off 5 shares of Monsanto at $5 each. I traded in the Pfizer and left the 25 bucks of Monsanto alone. 3-4 years after a split it's worth around $1200 bucks. Not bad, eh?

The problem, of course, is that I am appalled by just about everything Monsanto does.

From May 2008 Vanity Fair

Monsanto’s Harvest of Fear
Monsanto already dominates America’s food chain with its genetically modified seeds. Now it has targeted milk production. Just as frightening as the corporation’s tactics–ruthless legal battles against small farmers–is its decades-long history of toxic contamination.

I'll help with your dilemma, fwd me the $1200 and we'll just keep this between us.

[lukethedrifter]

I'll help with your dilemma, fwd me the $1200 and we'll just keep this between us.

I knew that was a dumb title and really I am ranting about Monsanto. I just figured the tie in, that I'm making a killing (okay too small to be a killing but ...) on their stock, that I was brought up on Monsanto money, just brought the story home.


Do you not care about how they go about business?

[Arthur Dent]

I have no particular problem with genetic modification. Human efforts to design new plants and animals are ancient and have resulted in many good things for society. This is just a new tool. I do have a problem with the business factors that determine how these things get developed, and Monsanto certainly has a disturbing record there.

Serious question: Does buying Monsanto's stock help their business in any way? The money you pay for the stock will go to its previous owner and not Monsanto. I don't really understand the connection between the stock and the company.

[jeffbgoofy]

Monsanto's Plant Science Center shares space with my church, so I don't have a problem wiht them. I am sure if you look into alot of businesses, you will find something you don't agree with...

[TabascoElvis]

I'll help with your dilemma, fwd me the $1200 and we'll just keep this between us.

I knew that was a dumb title and really I am ranting about Monsanto. I just figured the tie in, that I'm making a killing (okay too small to be a killing but ...) on their stock, that I was brought up on Monsanto money, just brought the story home.


Do you not care about how they go about business?

just being a smart a$$, I don't have enough knowledge about them to have an informed (or really uninformed even) opinion on their business practices.

Does that mean I don't get the $1200

[Hungary Jack]

Serious question: Does buying Monsanto's stock help their business in any way? The money you pay for the stock will go to its previous owner and not Monsanto. I don't really understand the connection between the stock and the company.

In short, the answer is yes. Buying the stock supports the company share price, which helps the company raise more capital to develop new GM seeds or beat the snot out of poor little farmers in court. While the increasing share price certainly helps provide investors with capital gains, the increasing stock price can provide a valuable currency for an acquisition of a competitor or a healthier balance sheet to lower its borrowing costs.

[Arthur Dent]

Buying the stock supports the company share price, which helps the company raise more capital

How does that work? Wasn't the capital all raised in the IPO? At that time, money from stock buyers went into the corporate coffers for use building the business. Later increases in the stock price allow the original investors to profit by selling the stock to someone else, but I don't see how it makes any money for the company itself.

[Hungary Jack]

Buying the stock supports the company share price, which helps the company raise more capital

How does that work? Wasn't the capital all raised in the IPO? At that time, money from stock buyers went into the corporate coffers for use building the business. Later increases in the stock price allow the original investors to profit by selling the stock to someone else, but I don't see how it makes any money for the company itself.

They can issue more shares at a higher stock price. Investors holding existing shares don't like this because it dilutes their holdings, but a rising share prices eases the pain.

They can also sell treasury shares (shares they own) at the higher price, and put the proceeds toward capital investment.

The rising share price can also be valuable currency in an acquisition that uses shares instead of cash.