Let's Pretend to Be Intellectual Stoners with This Play

Some of the more prominent and liquid marijuana plays are running today, namely GWPH and INSY. While those two issues are, indeed, a more conventional and less risky way to play the pot theme becoming increasingly legalized across the country than playing Pink Sheet bingo, let us not get too far ahead of ourselves and declare them to be blue chips or, ahem, dark green kind-chips. 

Even GWPH INSY are still high beta stocks and prone to violent swings, a fact which ought to be kept in mind by traders. 

With this in mind, it may be time to revisit The Scotts Miracle-Gro Company, a firm which started out innocently enough back in 1868 in Marysville, Ohio, where O.M. Scott began selling lawn seed. 

Since that all-American beginning, SMG is now closely connected to the pot business via its subsidiary, Hawthorne Gardening, which is involved in hydroponics, a way to grow plants without soil (jackpot for pot growers). 

After a monster rally beginning in July 2016, SMG finally cooled off back in January, a long overdue correction indeed. 

Although earnings are coming up on May 1st, I am growing (no pun intended) interested in a SMG long sooner rather than later if the chart can firm up after its fairly deep correction to reset the steep uptrend.

But the main point is that if pot plays like GWPH INSY continue to wake up into summer it is likely time to look at the SMG thesis again as a channel and instrumentality of the commerce end of the weed business.