External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

Scotts Miracle-Gro Co Cl A / Equity Bottom-Up

<ul><li>Recommendation to short shares of Scotts Miracle-Gro based on excessive leverage from Hawthorne hydroponics subsidiary's cannabis market bet</li><li>Core consumer lawn care business facing increased competition, pricing pressure, and challenges in driving volume growth</li><li>Projected 40% downside for SMG due to precarious financial position and reliance on key retailers and seasonal revenue</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Recommendation to short shares of Scotts Miracle-Gro based on excessive leverage from Hawthorne hydroponics subsidiary's cannabis market betCore consumer lawn care business facing increased competition, pricing pressure, and challenges in driving volume growthProjected 40% downside for SMG due to precarious financial position and reliance on key retailers and seasonal revenueThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Scotts Miracle-Gro Co (SMG) - Friday, Apr 5, 2024

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>The following names are "on the workbench", ie., names we are working on that look interesting from the short side. They are discussed, with charts, in the PDF attached below.</li>
<li>We like to be as transparent as possible in our short idea generation process.  </li>
<li>Today, we are flagging: Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.</li>
</ul>


The following names are "on the workbench", ie., names we are working on that look interesting from the short side. They are discussed, with charts, in the PDF attached below.
We like to be as transparent as possible in our short idea generation process.  
Today, we are flagging: Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.


Short Names on Our "Workbench": Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.

<ul>
<li>Scott’s core lawn care business is caught between rising fertilizer prices and declining demand after the Covid ‘fix-up-your-home’ wave began to dissipate.  </li>
<li>Fertilizer prices have spiked, hurting margins and “even if commodities start to ease, it will take a few years to claw back the margin we’ve lost”</li>
<li>At the same time, SMG’s cannabis growth strategy has fallen apart leading to a 65% decline in sales last quarter.  </li>
</ul>


Scott’s core lawn care business is caught between rising fertilizer prices and declining demand after the Covid ‘fix-up-your-home’ wave began to dissipate.  
Fertilizer prices have spiked, hurting margins and “even if commodities start to ease, it will take a few years to claw back the margin we’ve lost”
At the same time, SMG’s cannabis growth strategy has fallen apart leading to a 65% decline in sales last quarter.  


Scotts Miracle-Gro Company (SMG): Sell Short; Price: $84.57; August 17, 2022

Alpha-Centric ESG Research

Kyle Rudden

In <a href="https://www.smartkarma.com/insights/cannabis-stocks-esg-considerations-for-a-budding-industry" target="_blank" data-smartkarma-citation="insights:56947" rel="noopener">Cannabis Stocks: ESG Considerations for a Budding Industry</a>, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:<ol>
<li>
Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).</li>
<li>
ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.</li>
</ol>This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

In Cannabis Stocks: ESG Considerations for a Budding Industry, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:

Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).

ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.
This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

Cannabis Stocks: Some of the More ESG-Friendly Stocks in This Budding Industry

We aggregate key quotes from earnings, The Transcript

The Transcript

We aggregate key quotes from earnings

Aggregate Key Quotes from Earnings

Thematic (Sector/Industry)

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of the hardest-hit industries' activity is beginning to tick back up above 2019 levels. Along with that boom, there are clear signs of inflation and concerns about overheating. Even Janet Yellen seemed concerned for a few hours last week.

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of the hardest-hit industries' activity is beginning to tick back up above 2019 levels. Along with that boom, there are clear signs of inflation and concerns about overheating. Even Janet Yellen seemed concerned for a few hours last week.

United States

The Scotts Miracle-Gro Company markets branded consumer lawn and garden products, as well as a full range of products for professional horticulture. The Company manufactures and markets fertilizers, pest controls, plant foods, gardening soils, grass seed, and other products in North America and Europe. Scotts Miracle-Gro also provides lawn service in the United States.

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Scotts Miracle-Gro Co Cl A (SMG US)

Scotts Miracle-Gro Co (SMG) - Friday, Apr 5, 2024

Recommendation to short shares of Scotts Miracle-Gro based on excessive leverage from Hawthorne hydroponics subsidiary's cannabis market bet

Value Investors Club

Short Names on Our "Workbench": Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.

Short names on our workbench (under research) provide a window into our idea generation process. Today, we are flagging They are: Scotts Miracle...

Eric Fernandez, CFA

Scotts Miracle-Gro Company (SMG): Sell Short; Price: $84.57; August 17, 2022

Scott’s lawn care business faces declining demand after Covid. Fertilizer prices have spiked, hurting margins. SMG’s cannabis growth strategy has...

Eric Fernandez, CFA

Cannabis Stocks: Some of the More ESG-Friendly Stocks in This Budding Industry

This Insight assessing the current cadre of cannabis stocks and identifies the most ESG-friendly among them. Most being the operative word, because...

Kyle Rudden

The Transcript 05.10.21: Pent-up Demand

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of...

The Transcript

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