Agrium/UAP Deal Boosts Other Agriculture Stocks (MON, BG)
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Yesterday's buyout offer by Agrium Inc. (NYSE: AGU) for UAP Holdings (Nasdaq: UAPH) has the rest of the agriculture sector anxious to consolidate, or so it appears. CNBC's Jim Cramer told fans that the agriculture market is a "bull market intact" and likes the sector, despite ethanol's collapse. Cramer said "it is an amazing moment in agriculture" as demand is much stronger than supply for fertilizer, seed and many crop products.
Feeling a boost from the acquisition hype, Potash Corp./Saskatchewan (NYSE: POT) and Mosaic Company (NYSE: MOS) reached new 52-week highs yesterday. Today, two different, major players in the agricultural market step to the plate today.
Bunge Limited (NYSE: BG) saw a 6% rise in its stock price yesterday, but unlike POT and MOS, Bunge is continuing gains into today. Just an hour after the open, shares of Bunge were up more than 2% to a new 52-week high at $122.47.
Bunge, which is involved in every stage of the fertilizer business, in addition to being a leading supplier, transporter and processor of grains used by farmers, has had an amazing 2007, especially in the last half. Shares of Bunge are up about 65% this year, with only 11% of the upside coming from the first 7 months of the year, while the other 54% has come in just the last 3 months.
Next, shares of Monsanto Company (NYSE: MON) also hit a new 52-week high today when its price went as high as $103.31. The largest chemical manufacturer in the basic materials sector, Monsanto has attracted the attention of Jim Cramer. In fact, the President of Cramerica said Monsanto is his favorite play on the agricultural bull market.
Additionally, Monsanto will be presenting this afternoon at Citigroup's Basic Material Conference, which could prove to be informative to investors interested in getting in on what Jim Cramer (whose new book came out today) calls a "bull market intact."
Feeling a boost from the acquisition hype, Potash Corp./Saskatchewan (NYSE: POT) and Mosaic Company (NYSE: MOS) reached new 52-week highs yesterday. Today, two different, major players in the agricultural market step to the plate today.
Bunge Limited (NYSE: BG) saw a 6% rise in its stock price yesterday, but unlike POT and MOS, Bunge is continuing gains into today. Just an hour after the open, shares of Bunge were up more than 2% to a new 52-week high at $122.47.
Bunge, which is involved in every stage of the fertilizer business, in addition to being a leading supplier, transporter and processor of grains used by farmers, has had an amazing 2007, especially in the last half. Shares of Bunge are up about 65% this year, with only 11% of the upside coming from the first 7 months of the year, while the other 54% has come in just the last 3 months.
Next, shares of Monsanto Company (NYSE: MON) also hit a new 52-week high today when its price went as high as $103.31. The largest chemical manufacturer in the basic materials sector, Monsanto has attracted the attention of Jim Cramer. In fact, the President of Cramerica said Monsanto is his favorite play on the agricultural bull market.
Additionally, Monsanto will be presenting this afternoon at Citigroup's Basic Material Conference, which could prove to be informative to investors interested in getting in on what Jim Cramer (whose new book came out today) calls a "bull market intact."
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