stockpicker
05-15-2006, 01:54 PM
I put ScottsMiracle Gro Co (SMG) on my watchlist but I am irritated by the latest news about the company. In 2006 the stock is not that exciting but the news is. I learned that Scotts fires employees who smoke at home to “help them live healthy lifestyles”.
Current news show a different picture about the health concerned company. In Austria they just lost a lawsuit because of significantly wrong product declarations.
In Germany a leading journal rated some Scotts products ”insufficient” stating that a fertilizer contains far too much uranium and copper which might cause health problems. People think they fertilize their vegetables with a save product but they might end up eating contaminated tomatoes. Scotts main brand “Substral” has at least a growing image problem which might lead to a sinking market share.
Investors and consumers judge companies by their reliability and from my point of view Scotts does not show a conclusive behaviour.
Does Scotts have comparable problems in US that might have an impact on the development of the shares? Is SMG still an attractive investment?
Current news show a different picture about the health concerned company. In Austria they just lost a lawsuit because of significantly wrong product declarations.
In Germany a leading journal rated some Scotts products ”insufficient” stating that a fertilizer contains far too much uranium and copper which might cause health problems. People think they fertilize their vegetables with a save product but they might end up eating contaminated tomatoes. Scotts main brand “Substral” has at least a growing image problem which might lead to a sinking market share.
Investors and consumers judge companies by their reliability and from my point of view Scotts does not show a conclusive behaviour.
Does Scotts have comparable problems in US that might have an impact on the development of the shares? Is SMG still an attractive investment?