Source: Mark Gomes, PTT Research Long/short equity, research analyst, tech, IT channel checks

Summary

  • A PTT Research analysis uncovered AeroGrow as the most-attractively valued play on marijuana legalization in our study.
  • With distribution partners, like Amazon and Home Depot, along with Scotts Miracle-Gro as a major stakeholder, AeroGrow is newly-positioned to drive superior results.
  • AeroGrow is in the midst of re-launching its product line (which went from $0 to nearly $40M in 2 years during its initial launch) in close alignment with Scotts Miracle-Gro.

Editor’s Note: This article covers stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

In this article, I will discuss the opportunities and challenges for AeroGrow International (OTCQB:AERO), a company which I previously blogged about on PTTResearch.com. My analysis will center around AERO’s opportunities and strategic plan. It will also draw comparisons to one of its closest comps, GrowLife (OTCQB:PHOT), whose market cap was 16 times higher than AERO’s on the day of PHOT’s 52-week high of $0.47, despite AERO being the larger organization.

This is not to disparage PHOT’s opportunity. Both companies are well-positioned to take advantage of accelerating market and political trends. However, as I will show, AERO has products and distribution partners, like Amazon (AMZN), Home Depot (HD), and Target (TGT) to drive superior results.

In addition, AERO has four significant catalysts: 1) Scotts Miracle-Gro’s (SMG) substantial vested interest in the company — in fact, SMG is positioned to benefit greatly from its role 2) the re-launch of product line that went from $0 to nearly $40M in 2 years during its initial launch, 3) accelerating demand for organic produce, and 4) the growing trend of marijuana legalization in the U.S.

 

Full article source: http://seekingalpha.com/article/2077343-riding-high-on-aerogrow?source=google_news