SMG 4.18.17


In investing, what is comfortable is rarely profitable.          Robert Arnott

We never get ahead-staying in our comfort zone.                                 DOE
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Today I feature another stock in this “Cannabis” group, Scotts Miracle Grow, symbol SMG.

Why SMG is included in this group is a head-scratcher because of the much larger residential and commercial markets it is involved in.

This is like buying Ball/KerrMason Jars because ‘moonshiners’ use them. 

Some ‘environmental groups’ do not like SMG because of if involvement with Monsanto. I want to bring it to your attention.

Once again, I have no plans to get involved with the Federal vs. State, Medicinal vs. Recreational debate.  I do plan to answer your questions and analyze opportunities where and when they exist within this industry.

Key Points on SMG

1.     Nice 78% rally from July 2015 to November 2016

2.    Currently, is trading within a wedge pattern

3.    CMF is positive while the MACD Histogram is negative

4.    RSI and Slow Stochastics are static

Per the seasonality chart, in the last five years, you can see which months were the strongest and weakest.

How would I trade SMG?  With the high $90+ price, I would only trade option premiums.  At $90, I could trade nine $10 stocks/funds for the same money. Think what price would have to be hit for a 10-20-30% return? 

Consider last week’s candidate BLOZF, trading around .60 cents.  It only has to run six cents for a 10% return.  A rally to previous resistance at .80 would be 33% and a rally to $1.20 would be a 100% return.

This is my analysis to rate SMH as a (LPT) low profitability/probability trade.

Tomorrow we return to the All-Star B analysis for our Garden Growing portfolios. 

Enjoy your day,

David O. England 

Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

If you have a question or comment, contact David England at
eyeonthemarket@outlook.com

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