https://www.newswire.ca/news-releases/riv-capital-announces-us-150-million-strategic-investment-by-the-hawthorne-collective-a-subsidiary-of-the-scotts-miracle-gro-company-841802445.html

Introduction:

Welcome back to my weekly stock analysis. Disclaimer: I am not invested in this one

Scotts Miracle-gro Company (NYSE: SMG) Sector: Materials (Agriculture)

Company Strengths & Risks:

Scotts Miracle-Gro is a lawn care, garden and pest control distributor that originated in Ohio. It offers fertilizer, heat lamps, weed killer and more.

Strengths:

• Rising revenue year over year
• 6.55% dividend growth
• 30% payout ratio
• low yield
• 11 year dividend growth
• 222.38% 5Y price appreciation, 331.09% 10Y price appreciation
• Gardening is a universal hobby that benefits from WFH/layoffs
• cannabis can be another growth vehicle

Risks:

• low yield
• non constant free cash flow (every other year is shown as negative)
• covid affects distributors and suppliers.
• cannabis regulations

Financial History and numbers

SMG: Numbers from Seeking Alpha and Macrotrends as of Jan 1 2020

SMG does not have a constant free cash flow per share. It swings wildly and unpredictably. The payout ratio of 30% is very healthy. The dividend growth rates are also healthy. The yield of 1.12 is really low, so this has room to grow. The revenue has been parabolically increasing with respect to the trailing 12 months.

The EPS seems to have grown or remained stable year over year, With a formerly increasing EPS. Next, I will use the 3 year div growth rate to predict the payout.

Final Thoughts:

Scotts Miracle Gro has a lot of room for expansion and growing. With growing revenue, low payout ratios, and low yield, this can easil

So like the title states. We been using General hydroponics as our main nutrition for a while now. We must have been under a rock cause I was not aware that General hydroponics got bought out by Scott's Miracle-Gro. After we use up these bottles we would like to make a switch to someone who isn't run by Scott's. I am asking people here what they use. Preferably we would like a system similar to the GH system. What do you guys recommend?

Hey, I am not familiar with policies, so I apologize for linking my notes in my last post(s). Here is a bunch of info I collected on SMG.

May 2, 2018 ($78.51) Stock down 7.25% - Purchased an additional ~1% with average cost of $78.70

I have been researching the cannabis industry since February 2014. Unlike AB, my research has been casual over those years, but still concentrated. Going on my 5th year of researching, my thoughts are summed up in this comment. Please understand that this comment is for me, my clients, and in no way should anyone reading this post follow my current conclusion.

My view is that cannabis will eventually legalize world-wide. I had never imagined this in 2013. The industry was plagued with what I consider to be less than stellar operators. I used to clearly but DP in this category, but I am open to relaxing that view. As the industry progresses, larger players will enter the industry. I think most of the current cannabis companies, might very well crash and burn. I think that will occur via a lack of financing, liquidity, impaired investments, stress on operations as the expensive builds will cause great hardship as the industry finds that production will far exceed demand (even in Canada). At some point, and possibly in this decade we will see major corporations enter the fray. Perhaps Philip Morris (PM) will be one of them.

Yet, now is now. If you want to invest in the industry, how do you find value amongst companies are selling at multiples that are bigly. Come on, a company with $3M in annual revenues carrying a market cap of $200M. This is common. Yet, other than finding Canopy at just over ~1.15 USD and a then market cap of under $100M USD, I had never found a suitable value play. My research and thoughts are Scott's Miracle Grow fits the mold of value in the cannabis space.

For me as a cannabis investor, I think I have come across a near blue-chip company, deeply and materially entrenched in the cannabis sector, selling for value prices. I think the company is misunderstood by many, as they think the cannabis related revenues of the company are too small to move the needle, when indeed that is far from the case. I project SMG cannabis related revenues for F2019 (September year-end) will be more than 20%. I also think that their "hydroponic division" (Their sole source of revenues which are projected to be ~$600M in F2019) is a word that is misunderstood. I have spoken to industry