GrowGeneration Stock In For "Much Greater Upside in 2021", November 20, 2020

Due to its role as a servicer rather than a provider, Merida portfolio company GrowGeneration is in an optimal position to benefit from the sweeping legalization of marijuana, says InvestorPlace contributor Divya Premkumar.

With demand for marijuana soaring amidst the coronavirus pandemic and the continued legalization movement across states, GrowGeneration stock, writes Premkumar, is "the perfect way to get your foot in the door."

2020 was a period of high uncertainty and losses for many but GRWG stock proved to be a stable buy. In Q3, GrowGen company reported a 153% increase in year-over-year revenue at $55 million. Gross profit for the period also saw a massive surge to $14.6 million. This led the company to increase guidance for 2021 and expects sales to be between $280 to $300 million.

"Adding to a great bottom line," she writes, "GrowGeneration also has an acquisition strategy in place to spearhead its growth mission. This year the company acquired a series of businesses including Hydroponics Depot, Big Green Tomato and The GrowBiz. All three companies will bring in an approximate revenue of $71 million."

GrowGen is looking to add 22 new locations to the existing 28 next year, funding its growth plans by issuing more stock, a strategy that has paid off, given its high revenue numbers.

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