Jon Boyar thinks SMG's stock is set to grow - a podcast by Andrew Walker

Jon Boyar from the Boyar Value Group returns to the podcast to discuss his high conviction thesis for Scotts Miracle-Gro (SMG). SMG was a massive COVID beneficiary, and shares have sold off in kind with other COVID beneficiaries. Jon thinks the market is too pessimistic here, SMG's brands have Coke like market share, and the company has a rapidly growing "picks and shovels" cannabis business that he believes investors are basically getting for free at current prices

You can find all my writings here: https://yetanothervalueblog.substack.com/
My notes on SMG: https://twitter.com/AndrewRangeley/status/1489600380854013952?s=20&t=c24bhjV0UhOWlZWjgULoCw
Boyar's interview w/ SMG's CEO: https://www.boyarvaluegroup.com/podcasts/james-hagedorn-scotts-miracle-gro-chief-executive-officer-and-chairman-of-the-board-on-the-tremendous-opportunity-in-the-cannabis-space-potentially-spinning-off-the-fast-growing-hawthorne-division/
Boyar's SMG overview: https://www.lp.boyarvaluegroup.com/smg2021 
Boyar's Forgotten Forty: https://www.lp.boyarvaluegroup.com/andrewwalker

Chapters
0:00 Intro
1:35 SMG Overview
5:50 Why are SMG's brands so dominant?
9:50 Customer concentration risk for SMG
11:55 What happens to earnings as they lapse the "COVID boom"?
17:50 Discussing Hawthorne
21:30 What is Hawthorne's moat?
24:45 Federal legalization and Hawthorne's sales distribution
27:40 Why is Hawthorne's growth slowing right now?
29:45 Hawthorne's cannabis investment strategy
34:00 How SMG got into Hawthorne and look at it long term
36:20 Breaking down SMG's SOTP
40:00 The rationale for a potential Hawthorne spin
45:40 Closing SMG thoughts
48:25 Other interesting forgotten 40 names

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