Aurora Cannabis (NYSE:ACB) and Scotts Miracle-Gro (NYSE:SMG) shareholders are probably glad that 2018 is behind them. Aurora’s share price fell 35% last year — although the steep drop stemmed entirely from dilution caused by issuing new shares — while Scotts Miracle-Gro stock plunged nearly 43%.
It’s a new year now, and both stocks have gotten off to a good start. 2019 should be a better year for both Aurora Cannabis and Scotts Miracle-Gro for several reasons. But which is the better pick for long-term investors?
The case for Aurora Cannabis
If you like simple investing theses, you’ll probably love the investing thesis for Aurora Cannabis. It can be summarized in two statements:
- Global demand for cannabis will soar.
- As the producer with the greatest production capacity, Aurora Cannabis stock will soar, too.
I doubt that anyone would honestly argue against the first proposition. Supply isn’t keeping up with