Nope not the time to buy as long as SMG has Hawthorne pulling it down.
It’s funny to me, wondering how many people on this board reading this post actually believe in any way that the reason Hawthorne is doing poorly has anything to do with the cannabis market in the US as far as overproduction. I mean, that excuse doesn’t even make sense which should show you how disconnected these people are from Cannabis.
Hawthornes slow motion but colossal failure is straight up the result of Hawthorne going to grow bro idiots who have been operating in their garage and assuming that they knew what products and equipment would be needed to scale. Spoiler alert, they had no idea what was required to scale.
I work in California cannabis at agricultural scale indoor, outdoor, greenhouse and have been involved with around 40% of the states licensed cannabis canopy. I can tell you with 100% certainty that l absolutely none of the brands/products/equipment that you find in a grow/hydro store that were purchased by Hawthorne like Cann Fan, Botanicare nutrients, etc. are used at any significant scale other than for the home grower and that’s it.
It has never ceased to amaze me that a blue chip company like SMG would eff up this bad as far as just simply not even doing any due diligence as to what the market really looked like down the road and what products or product type/formats would be appropriate for that.
Even before Scott’s bought all of these companies people had already begun to scale above and beyond the type of equipment offered by the companies Hawthorne acquired.
