Scotts Miracle-Gro, the lawn and garden supplies company that’s been in business since 1868, just saw its stocks hit an all-time high of $80.14 a share. The reason: cannabis. How do we know that? Because an even more storied institution, JP Morgan, the banking powerhouse that’s been buying and selling American and half the world since 1871, told us.
“The hydroponics market taps into marijuana demand and the company now has a growth option that we think an investor is able to capture for about the price of the traditional business,” JP Morgan analyst Jeffrey Zekauskas was quoted in a Barrons blog post.
People have been getting rich off of marijuana for a long time, and companies have been too for not quite as long, but when investors and stock market analysts from one of the largest banks in the world start talking about it, you know that the business has turned a corner.
While a company like Miracle-Gro makes money indirectly off of cannabis sales (not from the plants themselves but from products used to cultivate those plants), some companies are making a big stab at the stock market with weed commerce.
Puration, Inc. might be the only cannabis extracts company in history to be publicly traded. From what we’ve gathered through research, Puration used to specialize in water purification products, but has moved its focus to extracts recently. The company has announced a million dollar project to team with Colorado cultivators Spanish Peaks ScrumpDelicacies to collaborate on THC and CBD-infused beverages.
Puration is only a micro-cap stock, which means small time (it’s what the brokers got rich off of in The Wolf of Wall Street and called “penny stocks” or “pink sheets”), but it has big designs. A statement widely circulated through PR Newswire this week says the collaboration with ScrumpDelicacies is only one of three upcoming major deals between Puration and other companies, and the company right now is projecting (for themselves) a $3 million revenue forecast.
How much Puration’s big claims are based in truth is pretty much anyone’s guess, but it shows that, even if they’re penny stocks, extract companies are getting into the stock market. And Miracle-Gro’s record high share in nearly 150 years shows that the cannabis business is affecting stocks for major companies outside of the industry. So, if you have a stock broker and you want them to keep putting your money in smart places, I might buy them a subscription to Dabs Magazine in order to keep them in the know.
Photo via Flickr user Sam Viladi