The Catalysts Behind The Trade…..
GrowGeneration will report earnings Wednesday, March 24, after the
market closes. The consensus earnings estimate is for $0.06
per share on revenue of $60.89 million; but the Whisper number is a bit higher
at $0.07 per share.
Consensus estimates are for year-over-year earnings growth of 700.00%
with revenue increasing by 139.87%.
Short interest has decreased by 60.6% and overall earnings estimates have
been revised higher since the company's last earnings release. The consensus
EPS estimate for the quarter has been revised 11.11% higher over the last 30
days to the current level. This is essentially a reflection of how the covering
analysts have collectively reassessed their initial estimates over this period.
For the last reported quarter, it was expected that GrowGeneration would
post earnings of $0.06 per share when it actually produced earnings of $0.06,
delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS
estimates just once.
Marijuana stocks have done well the past year as legalization spreads to
more states and more people began growing cannabis at home during the Covid-19
agreed to buy Santa Ana, Calif.-based 55 Hydroponics last Tuesday. The
acquisition expands GrowGen's retail footprint in California to 18, with nine
locations in the key Southern California market, and its overall U.S. locations
to 51. Terms of the deal were not disclosed.
"As the dominant hydroponics
retailer in Orange County, 55 Hydroponics boasts a devoted customer base,
unmatched cultivation expertise, and a vast inventory of top-notch supplies,
all of which will help GrowGen better serve Southern California's
growers," GrowGen CEO
Darren Lampert said in a news release.
Hydroponics acquisition was GrowGen's sixth this year.
GrowGen announced that it acquired Char Coir, which produces popular hydroponic
growing materials made from coconut fiber, to add more than $15 million to its
sales this year.
As well, on Monday GrowGeneration said it bought a
purchasing platform for commercial cannabis growers, marking its eighth
acquisition this year.
cannabis-focused retailer said Agron.io has technology that helps growers track
inventory and manage operations. Additionally, Agron's platform also offers
pricing and shipping data and a large product catalog. It sells a variety of
industrial equipment, like lighting and hydroponic supplies via the catalog.
expects Agron, which began operating in 2016 and is based in Denver, to add $20
million in sales this year.
the expansion into purchasing technology reflects GrowGeneration's effort to
become what it described as a "one-stop destination." It serves
commercial customers, which include large U.S. multistate cannabis growers.
percent of GrowGeneration's revenue comes from multistate or bigger
single-state operators, which often rely on such technology. GrowGeneration
runs 52 stores that sell products like nutrients and soils. It doesn't sell
The Actual Recommended Trade.....
** OPTION TRADE: Buy GRWG
MAR 26 2021 55.000 CALLS at approximately $3.60.
The Profit Explained…..
“Weekly Options Members” entered a trade
Tuesday, March 23, 2021 for approximately $3.60.
The trade was executed on our
recommended buy-point, and within 13 minutes had reached $4.50.
Members were given the following advice…..
NOTE: Keep a close eye on the stock today
– if there is sufficient profit it would be advisable to exit before the
earnings report due to such a volatile market, and an unknown direction even if
the report is excellent.