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2 Pot Stocks That Are Being Punished by Investors

By Eric Volkman – Aug 2, 2021 at 9:40PM

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This pair operate in a segment of the weed industry that has fallen out of favor lately.

Many investors run hot and cold with marijuana stocks, to say the least. These days, the hot part of that equation seems to favor multi-state operators (MSOs), the companies that manage the dispensaries where consumers get their "legitimate" weed.

In this video from Motley Fool Live recorded on July 16, longtime Fool contributor Eric Volkman and healthcare and cannabis bureau chief Corinne Cardina briefly discuss one segment of the pot market that's far lower on the temperature scale for investors.

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Corinne Cardina: How about picks-and-shovels, how are they doing?

Eric Volkman: Not particularly well. They have not been popular.

If we look at the two big pick-and-shovel plays, we're talking GrowGeneration (GRWG 0.75%), which is a hydroponics retailer that just can't stop acquiring assets, and Scotts Miracle-Gro (SMG -1.24%), which is a more traditional play that has gotten into marijuana over the last couple of years. People seem to be ignoring them. I don't necessarily think they should.

GrowGeneration is down. Again, year-to-date 1% while Scotts Miracle-Gro has slipped by 11%. I don't think it's fair.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GrowGeneration Corp and Scotts Miracle-Gro. The Motley Fool has a disclosure policy.

Stocks Mentioned

GrowGeneration Corp Stock Quote
GrowGeneration Corp
GRWG
$8.08 (0.75%) $0.06
Scotts Miracle-Gro Stock Quote
Scotts Miracle-Gro
SMG
$55.06 (-1.24%) $0.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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