Scotts Miracle-Gro (SMG) – Investing in the Coming Cicada Onslaught
Why Scotts Miracle-Gro (NYSE: SMG)? Because it’s coming… Like a horror movie where the mutant villain crawls out of the cemetery, millions of cicadas are about to emerge in certain parts of the U.S.
According to entomologists at Virginia Tech, for 1st time in 17 years (in certain parts of the Midwest and East Coast) as many as 1.5 million cicadas will emerge per acre, which could produce an eerie “alien-like wail” this spring and summer.
The cicadas are not harmful to humans – but they could cause damage to plants through their egg-laying habits. Adult female cicadas implant their eggs onto branches or vines, causing them to either split and wither in a process called “flagging.”
If it happens too many times, the plants can have their growth stunted or be killed altogether. Just look at these cicadas through the larva stage – to maturity – to death. Freakin’ gross.
How can you prevent cicadas from damaging your yard or your plants?
Here are some of the most common suggestions…
- Wrap netting around small trees or individual tree limbs to keep cicadas off
- Use insect barrier tape to prevent them from climbing onto your plants
- Manually pick them off with your hand
- Spray them off with a hose
I don’t know about you – but all of those so-called “solutions” seem like a lot of work. Case in point…. Here’s what a typical tree could look like filled with cicadas…
Do you want to spend your summer days hand-picking these aliens off your landscaping? Heck no.
Here’s a better solution… “Multipurpose Insect Killer can be sprayed over any plant and will both kill and repel unwanted cicadas.”
That’s where Scotts Miracle-Gro (SMG) comes into play…
Scotts Miracle-Gro (SMG) – Lawn Care Products
As I’m sure you know, SMG offers lawn care products, such as fertilizers, grass seed products, spreaders and outdoor cleaners.
They also offer gardening and landscape products that help grow plants and flowers – such as water-soluble and continuous-release plant foods, potting mixes, garden soils, mulch and decorative groundcover.
You’ve surely seen SMG’s brands at every HomeDepot, Lowes, and Costo across the country – such as Scotts, Turf Builder, EZ Seed, PatchMaster, Thick’R Lawn, EdgeGuard, Miracle-Gro, LiquaFeed, Shake ‘n Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, Hydroponics, Vermicrop, Gavita, Agrolux, Can-Filters, Sun System, Gro Pro, Hurricane, AeroGarden, Titan, Tomcat and Groundclear.
But here’s the thing… SMG also offers plant-related pest and disease control products – with recognizable brands such as GrubEx, Ortho Roundup and Alchemist.
Action Plan: Right now, SMG has two trigger catalysts working in its favor. First, it’s getting to be lawn and gardening season – which could trigger a spike in sales (especially coming after a year of being in lockdown – the need for a bang-up lawn and garden is more important than ever). Combine that with the 17-year cicada onslaught – and SMG’s pest and disease control products could see a spike in sales as well. Add them both up, and SMG seems like a strong play to buy on any coming price dips.
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About Bryan Bottarelli
Whether it was selling the Star Wars figures he collected as a little boy for 50 times their value or using the $125 he made cutting grass to buy a Michael Jordan rookie card that he later sold for $1,500, it was always clear that Bryan Bottarelli was a born trader – possessing the unique ability to identify opportunities and leverage his investments.
Graduating with a business degree from the highly rated Indiana University Kelley School of Business, Bryan got his first job out of college trading stock options on the floor of the Chicago Board Options Exchange (CBOE). There, he was mentored by one of the country’s top floor traders during the heart of the technology boom from 1999 to 2000 – trading in the crowded and lively Apple computer pit. Executing his trades in real time, Bryan learned to identify and implement some of his most powerful trading secrets… secrets that rarely find their way outside the CBOE to be used by individual traders.
Recognizing the true value of these methods, Bryan tapped into his entrepreneurial spirit and took a risk. He walked off the CBOE floor and launched his own independent trading research service called Bottarelli Research. From February 2006 to December 2018, Bryan gave his precise trading instructions to a small, elite group – most of whom have been followers ever since.
As a “play tactician,” Bryan uses his hands-on knowledge of floor trading to shape opportunities and chart formations into elegant, powerful and profitable recommendations. And by using the same hedging techniques taught by professional floor traders, Bryan is able to deliver his readers remarkable gain opportunities while strictly limiting their total risk.
Along the way, Bryan has developed a cumulative track record that could impress even the most successful hedge fund manager.
He now spends his days moderating one of the most elite trading research forums ever created: The War Room.