GM Organisms/Deutsche Bank

Carl Remick cremick at
Thu Aug 26 12:03:31 PDT 1999

> I'd hesitate before getting excited about this one. Not meaning to be
> horrible, but a Sell note from Deutsche Bank Securities isn't going to
> bring any form of capital to its knees.

Whatever DBS's usual strengths as a market mover, the logic of their arguments in this instance is sound. Here again are some extracts from their report as cited by the Guardian:

"We see a two-tier grain market developing with GMO (genetically modified organisms) corn and soybeans at a discount to non-GMO. Very bad news for farmers.

"* If a two-tier market takes hold, we see price premiums for high-value-added GMO seeds collapsing. Very bad news for seed companies.

"* If GMO seeds become a liability rather than a driver of growth, we see growth rates and valuations coming down. Very bad news for seed stocks.

"* Despite the fact that the science and logic in support of GMOs is very strong, GMOs are being demonized by their opponents. What food manufacturer will "take a bullet" for GMO corn in the face of such controversy?

"* We're calling into question the valuations of the seed-related companies. Is this a sector one should be invested in?"


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