AERO $AERO is a great and safe play in the cannabis sector in my opinion. For one, it already has millions in sales and an established business model. Pot growers routinely post online about utilizing the Aerogarden for growing weed, though the machine is not specifically designed to do so. I believe that the future potential of this company could be unlocked by designing a unit that would specifically be geared toward this segment. In my opinion, the stock is highly undervalued here. I am long on it and holding on, despite recent worries of insider selling. Last I checked, a large holder still owns a sizeable position.
Furthermore, I view Scott's Miracle Gro's option to purchase a larger stake in the company as a positive, due to the fact that it would push the company to the brink of an complete takeover. I would view this situation as one, though way down the road, as an event that would cause the board to only accept a significant premium relative to share price. With the company's presence in large retail outlets such as Home Depot and Costco, sales this year could push to record levels which should push the stock to record highs IMO.
This stock is a very low risk play in the sector IMO, due to the fact that it has a standalone presence outside of the marijuana sector which has the potential of high growth in itself.
