This morning we’re going to add Scott – Miracle Gro and Growblox to the the portfolio. GBLX is a solutions company for cannabis companies and Scott-Miracle Gro has been expanding into hydroponics supplies for cannabis growers.

GBLX is a penny stock – a lottery ticket, if you will. Given that the stock price is under a dollar a share, and the potential upside is huge, it seems like a reasonable bet. The legalization of cannabis, at least for medical use, seems to be gaining steam.

The most likely scenario, based on history, is that the more successful startups will be acquired by established corporations at some point. In the meantime it looks like an opportunity for taking advantage of the “Wild Wild West” cannabis business environment while everyone figures out what the new rules are going to be.

Scott is a well established company that pays a regular dividend, and has in the past year begun targeting the cannabis industry. Their stock is up from the mid-60s to the mid-90s per share in the last year, and they pay a regular dividend. The only possible downside to this one is that the stock price could go back down if political winds shift and put the kibosh on cannabis.

Note: I use the term “cannabis” because it’s the most inclusive term for the genus. Marijuana and hemp are less favored. Marijuana has a negative connotation, and hemp is a subspecies. Cannabis, according to purists, is the most correct term for the whole genus. It covers all the different uses for the plant, of which recreational use is a small but important part.

And no, I don’t smoke it.

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