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Case Studies
Scott’s Miracle-Gro Company
NYSE:SMG
Shares Outstanding: 57,530,125 (www.investing.com)
Share Price: $99.25 Market Cap: $5.71B
Qtr. Dividend: $2.03 Ex-Dividend Date: 11/22/17
Scott’s Miracle-Gro Company. (NYSE:SMG)
Shares Outstanding 57,530,125 (www.investing.com)
Share Price: $99.25
Qtr Dividend: $2.03
SUMMARY
3 With a reported $250 million investment, the Scotts Miracle-Gro Company formed a subsidiary called the Hawthorne Gardening Company in 2014 expressly to enter the cannabis market. Through acquisition, Hawthorne is now parent company to popular cannabis brands such as General Hydroponics, Vermicrop Organics and Gavita (SOURCE).
3 Scotts Miracle-Gro homing in on ‘big vision’ for hydroponics as state-legal cannabis grows (SOURCE).
3 Nelson’s Can-Filters acquired by US-based Hawthorne Gardening Company (SOURCE).
Finding information online for SMG proved an ideal example of the how paid promoters operate with many searches landing on the site of a paid promoter where the above news was just re-crafted. The purpose of which may be to attract traffic that otherwise would not have been there and those online metrics (website traffic, etc) become part of their marketing package to new and prospective clients.
While everyone seems to be watching what the big players of alcohol, pharma, and tobacco will do next after Constellation Brands announced a minority position in the world’s largest legal marijuana producer The Canopy Growth Corporation …. Very few eyes appear to be on the other large companies that stand to benefit significantly from hemp and marijuana industry. Companies such as SMG.
Investing.com has a “BUY” for SMG at time of writing. SMG recently sold European and Australian and assets while also increasing the amount of their quarterly dividend. Their foot in the door of the industry is ancillary.
If the share price of SMG is considered steep for you, consider investing in shares of the world’s first industry ETF (TSX:HMMJ) that current has SMG amongst their top holdings. The unit price of HMMJ has increased well over 30% recently and has distributions. In fact, five of their top holdings are American companies.