Syngenta: A Crop to Complete the Harvest

Because Syngenta's business is heavily weighted in traditional hybrid seeds and developing countries, recent credit contractions could have a negative effect on its growth rate. Even if some downward revisions should occur, the stock is trading well below its growth rate at more than 9 times current 2009 estimates. Investors should also note that Syngenta recently completed a 350 million Swiss frank bond offering, proving investor confidence in the business.

Shares of Syngenta have fallen just under 50% since last June from the $66 to $35 range. Because market volatility is high, I would take a 25% position now and look for an opportunity to scale in on any pullback.

By owning both Syngenta and Monsanto, investors capture a majority of the agricultural biotechnology market -- and the emerging technology in it. These two companies dominate a unique space with long-term growth potential.

Know What You Own: Syngenta and Monsanto operates in the agricultural chemicals industry; some of the other stocks in its field include Archer Daniels Midland (ADM - commentary - Cramer's Take), Bunge (BG - commentary - Cramer's Take), Potash (POT - commentary - Cramer's Take), Mosaic (MOS - commentary - Cramer's Take) and Agrium (AGU - commentary - Cramer's Take).

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At the time of publication, Gear had no positions in the companies mentioned.

Steve Gear was director of capital markets at Stockhouse.