2022 proved that wisdom is incorrect. An equal-weighted basket of the agriculture technology stocks in the graph declined by 80% in 2022, compared to a 73% decline in the MSOS ETF. 

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Two companies, Agrify (NASDAQ: AGFY) and Hydrofarm (NASDAQ: HYFM), experienced sharper declines of 99.6% and 94.5%, respectively. Even the group's best performer, Scotts Miracle Grow (NYSE: SMG), was down 69.8%, barely beating the MSOS ETF.

The color-coded segments of the bars in the graph add up to the total projected funding requirements (negative net cash flow) as a percentage of the market cap. Every company, except Scotts Miracle Grow, is expected to have negative EBITDA (green). Interest expense (blue), CAPEX (yellow), taxes (purple), and debt maturities (black) all increase projected negative net cash flow. The companies on the graph have funding requirements that …

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