So how do you square being a company that sells crop seeds with the fact that you are also a big producer of herbicides? A well-known outfit in St. Louis has just the right answer. It simply alters its seeds genetically, so that they tolerate its herbicides.

Monsanto Company (NYSE:MON) provides agricultural products to farmers worldwide. The company produces seeds and develops biotechnology traits that assist farmers in controlling insects and weeds. Products include canola, corn, soybean, fruit, cotton, sunflower and sorghum seed. The firm also manufactures the world's leading herbicide, Roundup. Monsanto's proposed acquisition of cottonseed producer Delta and Pine Land (NYSE: DLP) is now being reviewed by the U.S. Department of Justice.

Last week, the firm reported Q2 EPS of 98 cents and revenues of $2.62 billion. Analysts had been expecting 93 cents and $2.44 billion. Management also guided FY07 EPS to $1.60-$1.65, versus consensus of $1.63. MON shares popped above 50-day moving average support on the news and entered the initial stage of a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys," three "buys," six "holds" and one "sell." Analysts see a 22% growth rate through the next year. The MON Price to Book ratio (4.37), Price to Free Cash Flow ratio (25.28), Sales Growth rate (18.91%) and EPS Growth rate (22.50%) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 82% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past twelve months, it has traded between $37.91 and $59.66. A stop-loss of $50.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

For anyone that is actually watching the markets next week, here is just about everything happening in a very light four-day week sandwiched between two national holidays.

Monday December 25

• Markets are closed for the Christmas holiday

Tuesday December 26

• Healthcare conference calls: Merrill Lynch 10:00am, Bank of America 10:30am, Bear Stearns 11:00am

Wednesday December 27

• Delta and Pine Land Company (NYSE: DLP) will hold an earnings conference call at 10:00am
• Bear Stearns will hold a retailing-broadlines conference call at 10:00am

Thursday December 28

• Learning Tree International Inc (NASDAQ: LTRE) will hold its earnings conference call
• Newpark Resources, Inc (NYSE: NR) will hold its shareholder meeting at 11:00am
• Hurray! Holding Co., Ltd (NASDAQ: HRAY) to hold a firm-sponsored meeting with Think Equities

Friday December 29

• The Mills Corporation (NYSE: MLS) will hold its shareholder meeting at 10:00am