If you're looking to invest in the cannabis industry but don't want to worry about the risks of buying shares of pot producers, you may want to consider gardening and hydroponics company GrowGeneration (NASDAQ: GRWG).
Hydroponics is a way to grow plants without the use of soil, and GrowGeneration supplies cannabis producers with many necessities for growing both hydroponically and traditionally, including greenhouse materials and grow lights. The company has 28 organic garden centers across the country, and management thinks it's the largest chain of its kind in North America.
Since it's not selling marijuana, GrowGeneration doesn't need to worry about pot being illegal at the federal level. That makes it easy for the company to achieve economies of scale, because it can transport its products across state lines without worrying about legal problems. But let's look beyond just legality and see whether GrowGeneration is a business worth investing in based on its financials, growth prospects, and current valuation.