Grow Generation (GRWG) interesting small-cap that has rallied strong since August and bullish flow on 12/8 with 1000 April $35 puts sold to open around $5.80 and 500 of the April $30 puts sold for $3.40. GRWG sees a lot of retail activity and volumes pretty high every day but notable institutional activity here and willing buyers on a shallow dip. GRWG bounced off the rising 21-MA yesterday, the first test since early November and a move above $35 has a lot of room to continue the long-term trend. Shares trade 87X earnings, 10.8X sales, and 30.5X cash with mid-50% growth expected in 2021. GRWG sells hydroponic and organic gardening supplies and become a tangential play on cannabis, much like Innovative Industrial (IIPR) or Scotts (SMG). The company has a wide range of products including lighting fixtures, environmental controls, and potting mix for plant development. They’ve got a solid revenue mix with over 60% consumables like nutrients and additives which require repeat buying and creates a recurring revenue base. And, they’re expanding into more private label products which will give it a long runway for margin expansion and growth in 2-3 years. GRWG has 28+ centers across the US as well as an online store and expanding their business through M&A recently buying up competitor GrowBiz. They operate in both the B2B and B2C markets. Their business has accelerated with both the commercial customer and retail as hydroponic farming utilizes less space and can deliver better yields. Analysts have an average target for shares of $30 but Street High is $40. Lake Street positive on 12/1 noting that GRWG is potentially the most exciting retail growth story they have seen with industry-leading four-wall economics in a high growth industry. GrowGeneration has the potential to continue its sales and earnings momentum for many years through acquisitions and organic growth as it becomes the dominant player in a growth niche. Short interest is high, up around 15%, and rising sharply since July. Hedge fund ownership fell 13.5% in Q3. Analysts have an average target for shares of $31.