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
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.