r/StockMarket - $SNDL DD (due diligence & research) for 2/10. MY UPDATED THOUGHTS on Sundial Growers (The good and bad)
First off, upvote this so more people see it. Also, these things take time for me to look into every night, so I can update ya’ll, so please upvote. Thanks.
Hey all. $SNDL had a crazy day. I didn’t think it would go up this much, this fast. Initially I fell in love with the stock because at 75 cents, I knew it was undervalued. I felt it should be at about $3, which it is at now. I need to revaluate my new price target.
Shoutout to u/padyeos*, he wrote some good DD, which I will reiterate some points:*
My DD from yesterday:
https://www.reddit.com/r/SNDL/comments/lgl1of/sndl_due_diligence_research_catalysts_for_29_my/
My DD from last week:
https://www.reddit.com/r/SNDL/comments/ldo8z5/sndl_due_diligence_research_catalysts_for_25/
My DD from 2 weeks ago:
https://www.reddit.com/r/pennystocks/comments/l98xzl/due_diligence_sndl_im_back_with_part_2_18/
You should know:
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$SNDL fell from $13.22 to where it’s at now. Why did it fall? Poor management under a CEO that was replaced in the last year. Current CEO reduced spending, made them debt free, and they even won an award for product design last month. Rumors of CGC buying them out too
Facts:
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Sundial’s shares are up a staggering 555% so far in 2021
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$SNDL surged past $3 wall after-hours, now $3.20 on nearly 2.5 billion volume for the day.
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Looks like the volume today wasn’t due to short sellers like previous days. It either looks like new interested buyers, or shorts who got squeezed, and had to close their position:
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Volume is back up to levels it was at last week:
Bad news:
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Well this can be taken as good or bad. $SNDL was trending on twitter today, which is good for the price and awareness. The bad part is now “pumpers & dumpers”, day traders, and algo’s can ruin this stock, now that it is on their radar. Remember, $GME went downhill once it got media attention. These guys will be looking to manipulate the stock to line their pockets. Be careful.
The good:
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Only 6% is sold short, which is not bad: https://www.marketbeat.com/stocks/NASDAQ/SNDL/short-interest/
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EO Zach George says this strategy has the weed maker on the “verge of profitability.” If he’s right, Sundial’s stock price could continue to ascend: https://www.fool.com/investing/2021/02/10/why-sundial-growers-stock-skyrocketed-today/
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Sundial has used the steep rise in its stock price, to issue new shares and raise money, as an opportunity to strengthen its balance sheet. Following its recent share offerings, Sundial is now debt-free and cash-rich, with roughly $615 million in unrestricted reserves.
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Positive catalysts for the cannabis space this week also included earnings from Canopy Growth and Tilray’s UK distribution agreement. Other cannabis companies were surging amid strong financial results, new agreements, improving prospects for legalization, and attention from Reddit.
Thoughts:
Predictions:
Disclaimer: do your own research, make your own decisions because nothing is guaranteed, and I am not a financial advisor
I hope this was helpful. I am thinking of starting a Youtube channel when I can give you all updates. Or a TikTok for faster updates. Also, I started a FB group and discord so we can chat more. Feel free to join/ follow/ subscribe, the links are:
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