Shares of Scotts Miracle-Gro (SMG) are plunging Tuesday, falling more than 15% after the company reported disappointing earnings.

Scotts missed on both earnings per share and revenue estimates. Given the market weakness to begin with -- with the S&P 500 off about 1% Tuesday -- it's no surprise to see Scotts Miracle-Gro stock taking it on the chin.

A lot of momentum investors have been piling into Scotts because they view it as a pot-stock play, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.

Because of the company's hydroponic products, pot-growing was seen as a big catalyst by some investors. This catalyst gained steam at the start of the year as recreational marijuana became legal in the state of California. 

"The pot market is in flux," Cramer reasoned, explaining that there may be an oversupply issues, as well as confusion over who can grow and sell it.

This is not the breakout quarter," he added. Those who garden know that the strong results will come next quarter when the spring planting season starts gaining steam.

"I have to tell you, I think you've got to let this one settle because there's so much hot money in this thing and it's not because of Miracle-Gro and it's not because of lawn," concluded Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.

Strong spring sales for big-box retailers like Walmart (WMT) , Lowe's (LOW) and Home Depot (HD) could bode well for Scotts Miracle-Gro, where many of its products are sold.

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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.

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