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Scott’s Miracle-Gro Company. (NYSE:SMG)
Shares Outstanding 57,530,125 (www.investing.com)
Share Price: $99.25
Qtr Dividend: $2.03
Editor
Let’s wrap it up … the legal cannabis industry we have been told is a high risk industry for investment and we can agree that is true due to its precarious legal status and all of the challenges that brings. We know it is susceptible to paid stock promoters and online scammers. Yet paradoxically, this article demonstrates that it may just hold the key to mitigating systemic risk for the foreseeable future. A hypothesis that if proven to be true further reveals the paradoxical nature of investing in this industry as it appears ideal for risk diversification, long term, short term, contrarian investors, speculators and day traders, short sellers, private equity investors, ancillary company investments, should be recession proof, and so forth. Over a year ago I wrote an entire article dedicated to risk diversification by investing in the many sectors of the cannabis industry – this may be an ideal time to consider reading that article.
It was not long ago we predicted that alcohol and tobacco companies would enter the industry. With the legality paradox on the home front, international expansion seemed most likely and Canada the most convenient target (same language, shared border, hospitable trade agreements, politically stable, etc). As we know, Constellation
Brands took a minority stake in Canopy Growth Corporation.
On February 8, Alliance One International, Inc. (NYSE:AOI)
announced its further expansion in the US Industrial
Hemp sector and also that it had taken a controlling
interest in two smaller Canadian Cannabis companies.
And this news (AOI) came out after I had written this
article and I added this paragraph at the deadline to
submit the article. If large US Companies realize the
value of investing (including in Canadian companies)
then perhaps so should the typical Retail Investor.
Will believing in this hypothesis (legal cannabis
industry being recession proof) prove to be a recipe
for success? Only time will tell and until
next time – invest long and prosper.