The Scotts Miracle-Gro Co. (NYSE: SMG) is literally and figuratively growing when others aren't. In August, the company announced superior Q3 results of a 9% increase in revenue to $1.28 billion, driven by strong consumer-based sales in almost every lawn and garden category.

More good news: double-digit consumer sales occurred in 45 states. Wall Street has certainly noticed: it's pushed SMG's stock up more than 25% since the spring.

The housing sector has ruined many business models, but that does not mean there aren't survivors that will thrive, and Scotts Miracle-Gro (NYSE: SMG) is one. Here's why:

Although analysts generally see only slightly higher revenue in FY 2009 for SMG, a rebound is expected in F2010, so financial institutions have been incrementally adding to their SMG positions. This year, European sales will offset weakness in North America. Further, ample market share gains are possible on both continents.

MAJOR PAPERS:

• The Wall Street Journal's "Smartmoney Stock Screen" looks at eight companies whose valuations make them ripe to buy, and they also may be in the sites of corporate buyers. The big eight include Asbury Automotive Group Inc (NYSE: ABG), Crane Company (NYSE: CR), Scholastic Corporation (NASDAQ: SCHL) and The Scotts Miracle-Gro Company (NYSE: SMG).
• The Wall Street Journal's Walter Mossberg said in the "Personal Technology" column that he cannot recommend Apple Inc's (NASDAQ: AAPL) MobileMe, as it has "too many flaws to keep its promises".
• The Wall Street Journal also speculated that the collapse this week of SemGroup LP, which is the parent of SemGroup Energy Partners LP (NASDAQ: SGLP), may have played a role in the 14% drop in crude oil over the past 10 days.
• In a move that could take advantage of the gap in the financing markets, The Goldman Sachs Group Inc (NYSE: GS) raised $10B to invest in loans backing leveraged buyouts. The fund will reportedly buy senior loans, the Financial Times reported.

OTHER PAPERS:

• Former American International Group Inc (NYSE: AIG) chief Hank Greenberg is reportedly in settlement talks with New York Attorney General Andrew Cuomo over charges that Greenberg improperly inflated corporate books to show improved profits, the New York Post said.

MOST NOTEWORTHY: Google (GOOG) and Broadcom (BRCM) were the notable companies initiated today:

• Cantor initiated Google Inc. (NASDAQ:GOOG) with a Buy rating and $650 target, believing Google will continue to benefit from the secular shift of advertising and marketing dollars to the Internet and sees no signs of business "hitting the wall."
• Broadcom Corp. (NASDAQ:BRCM) was initiated by ThinkEquity with an Accumulate rating and $34 target; while the company is well-positioned in growth areas for 2007, the rating was based on excess channel inventory and valuation, and recommended that investors only buy shares of Broadcom on weakness.

OTHER INITIATIONS:

• aQuantive Inc. (NASDAQ:AQNT) was initiated with a Buy rating and $30 target at Cantor; the firm believes aQuantive has positioned itself as a "best-of-breed" provider of digital marketing services and technologies.
• Kevin Dann reinstated The Wet Seal Inc. (NASDAQ:WTSLA) with a Buy rating and $9.75 target, feeling that The Wet Seal can still meet their Q4 comps estimate of 3%, and believes the guide-down in comps would not have been necessary except for the need for full disclosure relative to the secondary offering.
• JP Morgan initiated Quality Systems Inc. (NASDAQ:QSII) with an Overweight rating, positive on the company's valuation and long track record.
• Prudential initiated The Scotts Miracle-Gro Co. (NYSE:SMG) with a Neutral on valuation with a $56 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).