A new year, a new law. After introducing medicinal marijuana some time ago, the state has now given the green light to sales of recreational pot.
Despite the more accepting nature of marijuana, there are not a lot of ways to play it in the stock market. Part of that is due to the differences between federal and state laws, but as acceptance grows, so too could the number (and size) of pot stocks.
One way to play the trend? Scotts Miracle-Gro (SMG) . The state of California houses more than 10% of the country's total population and this new legislation could lead to plenty of potential going forward, TheStreet's Jim Cramer said on CNBC's first "Mad Dash" segment of 2018.
The company's hydroponic devices allow consumers to grow plants indoors. While many may be familiar with the products when it comes to other plants and herbs, Cramer makes the case that this business may benefit from growers looking to dabble with marijuana plants.
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Most of Scotts Miracle-Gro revenue comes from big box retailers like Walmart (WMT) , Home Depot (HD) and Lowe's (LOW) , as customers use its products for gardening. However, hydroponic sales could become more significant down the line.
"Recreational marijuana is really a boom and there are not many ways to play it," concluded Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. This could be one.
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