That makes the shares an intriguing gamble. If Monsanto gets its money and some breathing space to knit its new collection of assets together, it could produce tremendous growth beyond 2000. These ratings were removed from CreditWatch, where they were placed May 12. The outlook is negative. The company spun off its industrial chemicals operations in late 1997 and now is focused on higher growth, more stable agricultural, pharmaceutical and food ingredients markets.
Many product lines enjoy above-average profitability and solid cash flow generation.
In particular, the blockbuster Roundup herbicide product lines benefit from very strong and entrenched market positions. The company faces the potential of heightened generic competition when key Roundup patents expire in year 2000, but the company's sound strategy to address competitive challenges through pricing adjustments and cost reductions should mute potential adverse effects. Cliff Estate Rd.