Maybe I’m missing something, so tell me why this trade is dumb.
Large parts of the U.S. are dealing with drought and lawns are getting absolutely cooked. Assuming we get rain in late summer or early fall, millions of homeowners are going to want to repair or completely reseed their lawns.
Wouldn’t that make **Scotts Miracle-Gro (SMG)** one of the most obvious beneficiaries?
Yeah, I know they already popped recently after analyst upgrades and better earnings, but is the market actually pricing in a potentially huge fall grass seed season?
Questions:
How much of SMG’s revenue comes from grass seed and lawn repair products?
Has weather-driven demand ever materially moved the stock before?
If this thesis is wrong, what’s the biggest flaw?
Are there better plays than SMG? Maybe SITE or CENT?
Looking for people who actually know the lawn industry or have followed this stock. Convince me I’m wrong before I throw money at it.