On Thursday, a French court upheld a 2012 ruling that found the company was liable in the chemical poisoning of a farmer who claims to have experienced neurological problems due to Monsanto's Lasso weedkiller, according to Reuters.
Monsanta, based in St. Louis, provides agricultural products for farmers worldwide. Among other products, it manufactures Roundup brand herbicides and provides lawn-and-garden herbicide products for the residential market.
Stocks in the fertilizer space have struggled all year long with questions about demand and pricing issues. Monsanto, the creator of "Roundup" and other ground nutrients, has been hit hard and is under severe distribution. The company is trying to close a deal with the Swiss company Syngenta (SYT) , but that is now in question.
As we consider the general stock landscape after the recent carnage, some names have recovered well while others have not. Monsanto's performance has been dreadful. Stocks and options should be sold on any rally. As you can see in the chart, the channel is defined, but just recently, the stock was so weak it fell right through on increasing turnover. That is not a good sign, and we see that playing out in the very weak momentum indicators. High distribution plus poor price action equals avoid. For more analysis on MON, watch this video.