Update - June 9, 2020

A Stunning Press Release From Scotts

I read an article this morning that was insulting.

It looked at the huge uptick of new brokerage accounts, touted the fact that more than 50% of last week’s trading action came from retail investors and examined the “froth” in the options market.

It concluded the numbers are trouble – that so many investors flooding into the market is a strong contrarian signal that values will soon fall.

I disagree.

I think the action is good news… great, in fact.

It shows that after millions of Americans lost their jobs, gave up their Liberty and were forced to go to the mailbox for a check from Uncle Sam, they’re now realizing the wealth-generating potential of the stock market.

And they’re being rewarded handsomely because of it.

From here, as long as these new entrants to the market don’t get greedy and they follow a prudent exit strategy, the action will treat them well.

With the Federal Reserve printing more cash than ever… there’s plenty of money to go around.

It’s certainly flowing into our portfolio these days…

Stunning New Numbers

Just this morning, the fine folks at Scotts Miracle-Gro (SMG) issued an exciting press release. They told us to toss out their old guidance and replace it with brand-new – much larger – figures.

Get this… The last we heard from the company (just last month), executives told us to expect sales growth of 6% to 8% for the year.

Not bad. Shares jumped on the news.

But this morning, the company added another digit to those figures. It now expects growth of 16% to 18% this year.

Much of the good news is coming from the many brands under the company’s Hawthorne umbrella. Guidance there was just raised from 30% to 35% annual growth to a quite healthy 45% to 50%.

Of course, sales don’t mean a whole lot to an investor unless they flow to the bottom line.

In this case… they most definitely do.

Going Up

Again, the company boosted guidance. It now expects earnings per share for the year to be in the range of $5.65 to $5.85… up from the previous figure of $4.95 to $5.15.

That’s a jump of about 14%.

It’s no wonder shares surged out of the gate this morning. But, as I write, they have clearly not fully discounted today’s news.

It means this is an ideal short-term buying opportunity for readers who have not yet bought shares or are looking to buy more.

There are signs of froth in the market, to be sure. But with the Federal Reserve pumping trillions of freshly printed dollars into the market, that’s to be expected. It will get a whole lot frothier.

We’ll see plenty of gyrations in the market in the days ahead. There will be down days. Some will be painful.

But the long-term trend is clear.

The dollar is getting weaker. There are trillions more dollars in the world today than at the start of the year. And investors are piling in to get their hands on some of them.

Prices will continue to rise… and rise quickly.

For a full rundown on the idea, turn to this month’s issue. It explains it all.

Be well,

Andy

P.S. Subscribers to my Codebreaker Profits system just banked gains of more than 700% because of some of the ideas mentioned above. I’ll give you the full details on how we did it next week.