The Five Dumbest Things on Wall Street

5. Scotts' Gro-ing Pains

Scotts Miracle Gro (SMG) got bushwhacked by an Environmental Protection Agency recall last week for improperly registering its lawn-care wares.

Bent on protecting consumers and the world from the uncertainties involved in widespread deployment of the company's "Miracle-Gro Shake 'n Feed All Purpose Plant Food plus Weed Preventer," the EPA cried foul on misidentification of the garden chemical. The government is also issuing a recall of the company's "Bonus S Max" and "Turf Builder Plus 2 Max." The EPA issued a "stop sale, use or removal order" against the products.

The recall, issued the day after Earth Day, caused a living nightmare at the company's Marysville, Ohio, headquarters. So much so that Scotts was forced to delay its first-quarter earnings statement until Monday. "Over the past week, most of our leadership team was consumed with issues related to the product recalls," said CEO Jim Hagedom. "Those events have prevented us from adequately preparing for our earnings release and conference call."

Scotts probably had its hands full tracking down the unnamed rogue employee who "deliberately circumvented company policies, caused invalid product registration forms to be submitted ... and then hid those actions from co-workers and managers," Hagedorn said.

On the other hand, Scotts was quick to remind everyone that the products in question account for less than 1% of total revenue, and the recall will cost between $5 million and $10 million.

More concerned with public safety than any impact its actions might have on the gardening supplier's earnings, the EPA issued the following advice to consumers: "Until [the] EPA has more information about the contents of these products, consumers are advised not to use these products, and to store them in a safe, cool and dry place such as a garage or utility shed" (emphasis added).

Talk about getting ordered out of the house!

Dumb-o-meter score: 65. The EPA put "Bonus S Max" out to pasture, leaving Scotts with a heap of fertilizer to shovel through.

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