Two weeks ago Scotts Miracle-Gro , the world’s largest supplier and marketer of consumer products for do-it-yourself lawn and garden care, reported a better than expected quarter, and then experienced a 10% drop after management guided its full year earnings forecast to the upper half of its previous range, rather than raising that forecast altogether. “Investors just saw the conservative guidance and sold this stock hand over fist,” says Cramer.
Cramer thinks the market has made a big mistake. But, this mistake by the market may have presented you with a great opportunity, says Cramer, an opportunity to buy SMG at a discount price. After the Mad Money host recommended the stock for speculation on May 1st, it has gotten even cheaper since—down another 2%. Now, the stock is trading more than 5 points below where it was prior to its better than expected quarter.
Cramer thinks management was being conservative with its guidance, especially considering the bullish tone of the conference call. But, he points out, it’s been two weeks and the stock still hasn’t recovered from the guidance-motivated beat down.
In order to get some clarity, Cramer is going right to the horse’s mouth and is speaking with James Hagedorn, the Chairman and CEO of Scotts Miracle-Gro. Watch the video for the full story on how Miracle-Gro could help grow your profits.
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