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I'd like to get opinions on the future growth prospects of Scotts. It is my opinion that the acquisition of the Ortho line of products will help smooth out earnings. Drier years people use more fertilizers, wetter years, people use more pesticides.

It seems that many investors are banking on the baby boom generation getting older and retiring by buying up pharmacutical shares like hotcakes. Since that sector has been run up, quite prematurely I believe, I have looked elsewhere. I think I have found that with Scotts. As people get older they are going to have more free time. Since many baby boomers have not prepared sufficiently for retirement, these older people will also be limited in their annual incomes. That means less time travelling and dining out, more time at home. And if there is one thing I know about suburban Americans is that they are anal about their lawns. With ample free time and limited incomes, they will be inclined heavily toward Scotts products, in favor of ChemLawn or other full service lawn care providers.

I felt the stock was a good value at $37 prior to their most recent earnings announcement. The earnings announcement was a very good one and the stock moved sharply higher. It has since retreated and now appears to be an even better value at present prices.

Is there anything I am missing in my analysis that would make this a less than desireable investment?
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