Syngenta AG (NYSE:SYT) is a Swiss based global agribusiness company that operates in the crop protection and high-value commercial seeds businesses. With world food prices rising at an alarming rate, interest in companies involved in biotech and genetically modified (GM) food crops has peaked. One such company is Syngenta AG.
Syngenta reported $9.2 billion in revenues and $1.1 billion in net income for the year ended December 31, 2007.
A current food crisis, as well as valid concern for long-term food shortages in the developing world, have become the main topics of discussion among world leaders. The fear is that for the next ten years this will be a major problem, unless steps are taken now to address this dilemma. Booming demand in emerging economies has put tremendous upward pressure on commodity and food prices. Populations in those areas of the world are expected to continue to grow at rates which will sustain this strenuous demand on commodities.
One way to speculate on this expected continued boom in commodity and food prices is by purchasing companies involved in biotech and genetically modified (GM) food crops such as Syngenta AG. Syngenta's stock price, however, has already risen 81% over the past 12 months, from $34 to $61.85, as of the close on June 10th.
One must be aware that buying SYT and other similar stocks is effectively speculatiing in commodity and food prices. It is difficult to predict the future direction of commodity prices with any degree of certainty. However, analysts believe that although there may be short term corrections, the long term trend for commodities will be up.
References:
http://www.syngenta.com/en/investor%5Frelations/
Company Annual 2007 Financial Report
User comments