NEW YORK (TheStreet) - Monsanto ( MON) was jumping Monday after a U.S. appeals court dismissed a lawsuit filed by organic farmers aimed at protecting them against legal action by the agricultural products maker, and China approved the importation of several of the company's seeds.
Monsanto, the world's largest seed company with $13.5 billion in sales in 2012, added 4.5% to close at $106.25.
Creve Coeur, Missouri-based Monsanto's patents won't be scrutinized after a U.S. court of appeals dismissed a case brought by organic farmers concerned the company would sue if more than trace amounts of Monsanto traits were found in their crops. Monsanto claimed that they would not take action over accidental contamination of fields even making "binding assurances."
The farming community brought the lawsuit in March 2011 as a preemptive measure, skeptical of Monsanto's aims after the company Monsanto filed over 800 cases against planters over the past five years charging them with utilizing their products without paying royalties."Monsanto's binding representations remove any risk of suit against the appellants as users or sellers of trace amounts (less than one percent) of modified seed," Circuit Judge Timothy Dyk wrote as explanation for the ruling. Separately, China approved the import of some of Monsanto's genetically modified and genetically engineered seeds, a development that Morgan Stanley analyst Vincent Andrews called "the single most important box in our Monsanto investment thesis.'' Monsanto faced lawsuits in Brazil and Argentina over patent and intellectual disputes over their Roundup Ready soybeans. The Roundup Ready variant is less susceptible to the herbicide glyphosate that the company markets under the Roundup brand. Monsanto aims to win approval to sell these seeds in Brazil next year and in Argentina by 2015. "Intacta is the key opportunity to get paid for soybeans in South America, and it is the key 2014-plus growth driver," said Andrews, who has an overweight rating on the shares with a 12-month price target of $125. Norberto Yauhar, Argentina's Agriculture Minister said in a June 8th statement that China approved the import of the Intacta Soybeans and 3 other genetically altered products.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV