Will Scotts Miracle-Gro Help Your Portfolio Get High?

This morning in the Wall Street Journal, Scotts Miracle-Gro (NYSE: SMG) was profiled talking about the company's initiative to get into the medical marijuana field.

So will the company's new initiative allow your portfolio to get higher than high?

That appears to be the investor sentiment this morning, as shares are up 2 hours into trading, but have moved off their best levels.

The Marysville, Ohio-based company has long been known for its soil, weed killing, and lawn care products, but with the move into weed, the company is hoping it can spark up a hit to revenue, and ultimately boost the stock price.

Scotts sells a line of granular lawn fertilizer and combination products, including pest control, plant foods, and crabgrass control, but the company is hoping that these other niche markets it is moving into will help boost overall sales.

CEO Jim Hagedorn spoke to the Journal in an interview, and said that he wants to use medical marijuana, and other nice markets to boost sales. "I want to target the pot market." "There's no good reason we haven't."

The company generated $2.9 billion in sales last year, growing revenues nearly 8% year over year. The company has largely been dependent on Home Depot (NYSE: HD), Lowe's (NYSE: LOW) and Wal-Mart (NYSE: WMT) for the majority of its sales, but perhaps "High Times" can help light up sales with this new initiative.

According to See Change Strategy, the medical marijuana market will grow to $1.7 billion in sales this year, and Hagedorn wants his fair share of that pot (pun intended). The medical marijuana market may not "light up" shares just yet, as the market is still small, but is growing rapidly.

Shares are not expensive, trading at 12.5 times forward earnings, and also sport a 1.9% dividend to boot. Scotts Miracle-Gro has also had a history of paying out special dividends, though these dividends are not the "special kind" you are thinking of.

Shares have rose 13% in the past 52 weeks, compared to a 17% gain in the S&P 500, but if the medical marijuana push can boost revenues, then perhaps shareholders will want to toke (not take) another look at Scotts-Miracle Gro.