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GrowGeneration Corp. (GRWG)

NasdaqCM - NasdaqCM Real-time price. Currency in USD
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22.12-0.78 (-3.41%)
As of 1:37PM EDT. Market open.
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  • K
    Kitt
    GrowGeneration Invests in Total Grow Control
    PR Newswire
    8:30 AM ET
    GrowGeneration Continues To Expand Controlled Environment Agriculture Offerings for Commercial Growers to use Automation and Data to Optimize their Grow Operations

    GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced a strategic investment in Total Grow Control, a Houston-based controlled environment agriculture (CEA) engineering and manufacturing company specializing in facility design, nutrient delivery systems, water filtration solutions, and a complete integrated control platform operated from a cloud-based user interface.. As part of the transaction, GrowGen has the right to exercise an option to purchase 100% of the assets of Total Grow Contr ol. Total Grow Control's programmable control systems and software help growers automate their operations for efficiency, consistency, and uniformity. Total Grow Control's signature offering, the Eden Environmental Control System, offers a comprehensive and easy-to-use customer interface that communicates with new and existing atmospheric controls and lighting systems.
  • J
    Jonn
    New York just approved allowing six plants for home cultivation for medical purposes and recreational rules coming soon. The new governor is finally moving on establishing rules. Hoping GROW makes an announcement soon on East Coast expansion.
  • h
    hunter
    From the belushi interview,
    “Then I got to a point where I had six greenhouses, hoop houses really and one greenhouse. And I don't know if I have the right grower, but we had aphids, rustic mites with mold, terrible mold [technical difficulty], 300 pounds mold, never I can cycle on a light up [ph] and I was just overwhelmed.
    And what we weren't growing what was coming out was very good. It just the production value sucked, the cost sucked. And I needed some help and I was doing a TV show about cannabis. So the TV show Growing Belushi and discovery kind of filled my journey through all these terrible mistakes that I was making.”
    “When I got Jeremy and Jeremy came to the farm and said no, no, yes, yes, no, no, no, no, no, no, no, no, no, no, yes. no, no, no, no, no, no, no, no. Bad Jimmy. So we formed the partnership with GrowGeneration. We have rebuilt, restructured Belushi's Farm to the point where we're probably we are on the cutting edge of technology, cleanliness, consistency, probably the best in Southern Oregon for sure, not Oregon, because of Jeremy's insight knowledge. And we filmed that for the second season of Growing Belushi.”
    “I would say there was some turmoil when I first came on the farm, these changes that we're making have a high cost value to them, but in the end, have a short ROI. And the changes that you're going to make are going to, from changing the greenhouses, to changing the environment, to changing the lighting, getting more light intensity, there was several problems on Jim's farm, one being electricity. He only has the availability of so much electricity on that farm, and he really wasn't utilizing the best equipment to be able to capture the most light intensity that he could get through his plants to achieve the highest yield.
    And I think that was one of my main concerns going in there, it was like, Okay, how are we going to get the yields up? And from switching from a high pressure sodium light to an LED light is also a little bit of a learning curve. It's a learning curve for his guys on his farm, and also working with Devin, who is the grower on the farm and one of the other consultants.”
    “And over the years, as you've known where to find the best information, you just start to take in that information year over year, reading continuous education, to nauseam, it's just something I've always been interested in over the years. So I kind of picked one topic, and then just, I keep into it.
    So irrigation, for instance, just diving into irrigation, the different systems, how are we going to feed the plants, what intervals, what water and then moving into another thing. And I think over 15 years, I've just slowly done that and I am still continuing to do that, as the industry evolves, becomes more technological. There's things changing all the time, you can never know everything that's going on right now. It's constantly evolving, constantly changing, and you have to stay up on that.
    RS: What's your goal within your role in GrowGeneration and what's your role specifically with this partnership with Belushi Farms?
    JC: So my role with GrowGeneration, I'm the Vice President for GrowGeneration's commercial division. So…
    JB: No, no, no. His role is in growing Belushi. He's the monster that comes into the series. He comes into the show as that big monster…”
    “We're going to put the cast and credits we're going to name the character a monster. Means he's rolling Belushi, which is going to come out in the fall and use an instrumental part of the spine of the series, because during the series we're going to watch the tearing down and rebuilding and through all this, which discovery lights is the processing of what is what and what it means.
    And we are in a way teaching people who are watching this show, what goes into a growing cannabis from the seed to sale. And what we're really trying to do is build confidence in cannabis within the community and with the new consumer which discovery has that ability to reach.”
    “No worries. But my goal is to show the world that GrowGeneration is going to be the best systems provider partner integration that you can work with. We've built this division up to 58 people that are servicing all of our commercial customers across the country, and we're only getting bigger. So that's my main goal for GrowGeneration.”
    “And so we go to Jeremy and we go to the 44,000 square foot facility in Tulsa, to buy our equipment for our competition.
    And in that process, Jeremy and I decided on certain products, soils, nutrients, tent, lightning fans, we came up with a kit that anybody could buy. And it's all-in-one, that you can put in your garage, you can put in your closet to hide from your mamma. And that's one product that we're talking about developing together is a home kit, because this legalization medical market also, you can grow six plants at home, and why not grow your own medicine.”
  • h
    hunter
    The rest from the Belushi interview,
    “Well, GrowGeneration is a debt free profitable company already. Where do I see us going, expanding into newer states, getting into New York, Pennsylvania, New Jersey, Maryland, as these are starting to open up. More acquisitions coming down the line, we just closed two stores in the last couple days, one in California, one in Washington. Continuing to expand in the markets that we're already in, and then as new states continue to open up with cannabis legislation, GrowGeneration will be there to support all the clients that need to come in and need help for their growing.”
    “I don't know if it's a benefit at all. I think it's just more regulation. And the more regulation we have, the less information that can be transferred from GrowGeneration to the client. I think not being able to touch plants, and being under those guidelines restricts us into what our full potential is down the road.
    And when that regulation changes, that's going to be a whole new level for GrowGeneration. I mean, the talent that we have on the team is remarkable. And you're just taking tools out of their toolbox to be able to assist people across the country. But we will continue to work with less tools in the toolbox and as we're allowed to move further and further in this industry, I think, the sky is the limit for GrowGeneration.”
    “Yes, I think you want to look at everybody who's on the team of GrowGeneration. I think as of yesterday, we had 699 employees within the company. The focus would be to take all of these years of knowledge that people have kept in this plant and working with this plant and being able to distribute that education out to the masses in any way possible.
    Right now we'll continue to do it the way we do it and as legislation changes, GrowGeneration will evolve into something bigger and better as we've continue to do year after year.”
    “And right now Anthony my grower is I've gone through three growers and I've finally found the one who's not a bullshitter. This guy is in the dirt in the soil all day long and he's really brought the quality of the terpene values of my plants have gone up. And with Jeremy's help and Grow Generation's help, we've even doubled that.”
  • R
    Richard
    A Good Sign - in today 10/20/21 today’s MOTLEYFOOL advertorial ‘why buy GRWG’ - they presents misguided financial interpretation in a manipulative story (their ‘articles’ are just FOMO sales pitches) Learned over the years to invest against MFs advise/ Betting against the MFOOLS a (especially Kramer) is a good strategy to make profit. MORE BULLISH THAN EVER
    LONG & STRONG
  • B
    Buzz
    I'm in at a cost basis over $34. I'm thinking we will get to tax loss selling for all pot stocks as we head into year end. I am thinking of dumping my holdings in this (and CURLF) for the tax loss NOW, and buying back pot position in December after wash period passes and others have taken their losses. I think that might be the play here.
  • h
    hunter
    “ The Company pre-announced 2021 third-quarter revenue guidance of $114 million to $116 million, bringing year-to-date 2021 revenue to $330 to $332 million, up 150% from 2020. Same-store sales for the third quarter were up over 15%, versus the same period last year. The Company announced fourth quarter 2021 revenue guidance of $110 million to $120 million, incorporating all acquisitions and new stores announced to date. Full-year revenue guidance has been revised to $440 million to $452 million, following the termination of the planned acquisition of HGS Hydro. This acquisition was assumed to provide about $20 million of revenue for 2021. In addition, the Company expects adjusted EBITDA for the full year to be in the range of $47 million to $51 million. Adjusted EBITDA is a non-GAAP metric that represents net income before interest, taxes, depreciation, amortization and share based compensation.

    The Company also announced its acquisition of All Seasons Gardening, an indoor-outdoor garden supply center specializing in hydroponics systems, lighting, and nutrients. All Seasons Gardening is the largest hydroponics retailer in New Mexico. With the acquisition of All Seasons Gardening, GrowGen's portfolio of hydroponic garden centers now includes 63 stores across 13 states.”
  • R
    RickyBobby90210
    Cost basis at 25.02, should be rewarding in the long run.
  • V
    Vincent
    Just got back from a trip to Denver, visited two stores lots of enthusiasm. I’m more confident than ever in the strategy and execution!
  • S
    Sandman
    Where to from here:
    1) GRWG is moving from acquisitions to construction adding more hrisk and uncertainty.
    2) You need real estate and legal expertise to develop across the country which has wide land use regs across jurisdictions.
    3) Development will lead to slower growth but how much slower. Management needs to address.
    4) Balance sheet and cash are ok for now but development is cash intensive so it is unclear how they will finance development once the cash runs out.
    5) Development requires expertise and infrastructure to do it successfully. They will need to build out a department which costs $.
    6) GRWG still has not received a clean accounting billing and will continue to spend money to clear the issues.
    7) Need to hear more about the returns on development vs prior acquisitions.
    8) Development costs are going through the roof and how will this small company control costs.
    9) Cherry picking acquisitions is over. Will there be a further exit of investors as growth slows.
    10) why invest today when there are so many questions the company needs to answer.
  • F
    Freek
    in a interview from new cannabis ventures with darren lampert, he said the reason that HGS was terminated is because the cost of acquisition doubled due to a 50% drop in share price. Lampert said this was the only way and he must do this in order to protect investors. He also said from now on they opt building over buying new stores!
  • h
    hunter
    “ Roth Capital analyst Scott Fortune lowered the firm's price target on GrowGeneration to $40 from $55 and keeps a Buy rating on the shares. The analyst notes the company has terminated the HGS Hydro acquisition, leading to lowering Q3 guidance on both industry-related headwinds and about $20M in lost acquisition revenue. Fortune believes the mutually terminated acquisition saves about $60M in cash to build out organic stores and smaller acquisitions like the announced All Seasons Gardening, a leading NM-based retailer. Near-term softening is driving second half of 2021 weakness, but the analyst believes GrowGeneration "easily remains the hydroponics retail market share leader," and the current 1.9-times 2022 EV/sales valuation is "compelling."”
  • C
    Cole
    All the negative comments are clearly shorts and people trying to get a reaction to fluctuate the price and this specific stock is full of them it’s been a easy target everyday I’ll admit , but FUNDAMENTAL’s don’t lie this company is a sleeping giant !
  • S
    Sandman
    We do not know why the HGS transaction was cancelled and it may have indeed been mutual. From GRWG's perspective, the cost of the acquisition had materially increased with the collapse of the stock price. From HGS's view, they probably did not want part of the purchase price tied up in restricted shares of a company in free fall. Not a good look for GRWG when potential sellers see this in the news.
  • A
    Anonymous
    When the HGS acquisition was announced in July the share price was around $40. Just 3 weeks later the share price was below $30. If they are making these acquisitions with mostly stock, they would have to issue 30% more shares to pay for it meaning the price to GRWG just went up 30%, or more as the share price continues to fall. Possible the ROI just no longer made sense, and if that's the case, glad the deal was terminated. It's not all about revenue at any cost.
  • R
    Richard
    GRWG is so irrationally beaten, even then I’ve financial advisory cos (sern at least 3 forms including Motleyfool, Zack’s) calling it one of the best upside opportunities in the market, as well as PR releases concerning hedge and other funds increasing their positions, buy recommendation across the board. Understandable as GRWG is already profitable and making all the right moves - private label, distribution centers, B2B growth, increasing margins. Customers claim GRWG is a great resource, mostly all positive experiences. So what gives? Unsettling, no one likes to see this kind of fall - recent prices has little relation to company’s performance and potential. I remain Long & Strong - the data and results to date are too good to ignore, it will bottom and head back into a more rational price as they expand. Party just getting started. BULLISH
  • J
    John
    Finally the stars align and I get in on an obvious revenue growth rocket at a great price. I've watched several interviews with management. I never buy into a company without putting time in on DD on the management team. When a CEO has a vision that his team clearly buys in on then you have a cohesive, mobilized and motivated management team. I have been a part of such a startup team and it becomes unstoppable. Scotts Miracle Gro only had the nutrient end of cannabis and they rocketed to a ridiculous stock price. Grow Generation has the entire package and is directly involved with cannabis at all levels commercially and home grown. This truly is Home Depot in it's infancy. But with not a sign of a Lowes on the horizon. LOVE this opportunity. Going to increase my position to 10% of my portfolio. GLA!!
  • c
    chris
    8 months ago Stock was trading at $60 and everyone was excited about $450 guidance and now it’s at $22 with same guidance and everyone acting like the sky is falling.
  • m
    makleah
    Oppenheimer’s 5-star analyst Brian Nagel, in a note titled ‘Pullback in GRWG a Buying Opportunity,’ writes of the company: “While current market concerns are not necessarily baseless, we nonetheless view them as largely overblown, particularly for well-positioned and rapidly developing players such as GRWG. We recommend intermediate to longer-term-oriented investors focus upon prospects for significant sales growth and profit expansion unlock at the chain, in coming quarters and years, as internal initiatives further take hold and shorter-term sector dislocations likely abate, and utilize weakness in shares as a buying opportunity.”

    To this end, Nagel rates GRWG an Outperform (i.e. Buy), and sets a $60 price target that implies room for 156% upside in the year ahead. 
  • S
    Steven
    Just realize that all the retail investors that panicked today and sold are selling to the big smart money guys who are loading up at discount prices.