We don’t want to own today’s great companies. Well, I mean, of course, we want to own great companies. But what we really want is to own tomorrow’s great companies, asserts growth stock expert Briton Ryle. Here, the editor of The Wealth Advisory looks at two of his recommendations with exposure to cannabis.
Scotts Miracle-Gro (SMG) is really shining these days. The firm manufactures, markets, and sells consumer lawn and garden products worldwide. It recently acquired the top hydroponic nutrient supplier in the U.S. And it now supplies nutrients to a large share of the legal marijuana growers in the country.
The cannabis-related wing, Hawthorne, is contributing meaningful profits, and cannabis investors are getting on board again. The company — which beat expectations in three of the past four quarters — reported its first-ever Q1 profit on record-high numbers last month.
The shares spiked briefly as Reddit turned its attention to pot stocks and the whole industry popped. Those gains fizzled in a day or two, but thanks to the quality company behind them, SMG shares have already completely recovered and holding nicely above our limit buy price.
So I’m going to boost it once again. I’m also raising the target since we’re nearly there already. Keep adding shares for the long term under our buy limit. The Scotts Miracle-Gro Company is now a “Buy” under $250. The 12-month price target is $300.
Innovative Industrial Properties (IIPR) is a REIT that’s focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
The company is operating just about perfectly and continues to expand its portfolio of properties. IIPR acquired Florida property and signs long-term lease with Harvest Health and Recreation (HRVSF).
The most recent purchase adds about 295,000 square feet of industrial space, and it’s already leased out to the previous tenant-seller. Also, we’re now getting $1.24 per share per quarter in dividends.
Meanwhile, the company beat expectations in four of the past four quarter. The stock has now soared through three newly raised buy limits and looks like it’s going to keep climbing in the long-run. I now rate Innovative Industrial Properties a “Buy” under $225. The 12-month price target is coming up to $300.
