Image via Mike Mozart/Flickr CC
When you think about Scotts Miracle-Gro (SMG), the first thing that probably comes to mind is your front yard; the company became famous for its weed and feed products for residential lawns, notes Brit Ryle, growth stock expert and editor of The Wealth Advisory.
Over the course of its history, it’s become one of the biggest names in home gardening, too. But thanks to some well-planned purchases in recent decades, Scotts is now making a name for itself in the marijuana industry as well.
One of the biggest developing trends in the marijuana market is organically grown herbs — pot that is grown without chemical fertilizers.
Thanks to Scotts’ purchase of Earthgro back in 1998, the company is a big supplier of organic potting soil in some of the biggest marijuana-growing markets in the country.
But the company didn’t stop there. More recently, in 2014, it created the wholly owned subsidy Hawthorne Gardening Company to focus on the emerging indoor and urban gardening markets — markets that were and still are growing rapidly thanks to legalization in more and more states.
And it hit the ground running. Just a year after creation, Hawthorne bought the country’s number one hydroponic gardening company, General Hydroponics, which makes and sells equipment and nutrients for growing cannabis without using soil.
Plus, with the purchase of General Hydroponics came its other wing, General Organics. It provides, as the name suggests, products and supplies for growing your buds organically. And it gives Scotts even more shelf space in the natural and organic gardening sections at both major chain retailers and in specialty shops.
The best thing about Scotts for us is that it’s not some company that sprung up out of nowhere. It’s got a long history of growth and industry domination.
And it’s not going anywhere for a long time. So, we don’t have to worry about our gains being erased by some wild fluctuations in the weed market.
Scotts is going to give us gains for decades. And they’re only going to increase as more and more states adopt medical and recreational marijuana laws. So, we’ll watch our shares grow. The Scotts Miracle-Gro Company is a Buy anywhere under $97.50.
Brit Ryle is editor of The Wealth Advisory.
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