Is Sundial Growers a Good Investment: Does Sundial Growers Have a Future?

Sundial’s growth hasn’t been significantly better than that of its competition. Until recently, the company’s top line was in freefall and unable to move in any direction other than downward.

Because of this, Sundial has proven to be an attractive alternative for investors in the cannabis industry.

Do I Think Sundial Will Be a Good Investment in 2022?

This is a classic high-risk/high-reward investment: Sundial Growers Inc. Shares of Sundial might more than double in value next year if everything goes according to plan. However, if the firm continues to falter or its losses increase as a result of these acquisitions, investors could be in for a difficult year, especially if the cannabis market also underperforms.

Is Sundial Growers a Good Investment:

My recommendation is to stay on the fence until you are comfortable taking on that risk. In light of recent market volatility and the high level of uncertainty surrounding Sundial, I would not recommend this stock as a long-term investment.

Is Sundial Growers Inc. A Good Investment Right Now?

You should know the following information before making a decision about Sundial Growers Inc.
Sundial Growers Inc. wasn’t one of the 10 best stocks for investors to purchase right now, according to our award-winning expert team.

Motley Fool Stock Advisor, their 20-year-old online investing service, has outperformed the market four times. And based on their current analysis, they believe there are ten better equities to buy.

The first is that the company reported a positive adjusted EBITDA profit not once, but twice this year, which is a good sign for the company. Cannabis firms like Aurora Cannabis and Canopy Growth, two of Canada’s largest producers, are constantly striving to improve their adjusted EBITDA, which is a hot issue in the industry.
It is also possible that investors believe that the company will continue to grow. This year, Sundial has made a number of purchases in an effort to modernise the company. When it was reported in October that it would be purchasing Alcanna, a liquor shop chain with over 170 locations across Canada, the market reacted positively.

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Also, Nova Cannabis, which controls more than 60 pot shops in Canada, has a controlling interest in it. With the addition of Spiritleaf, which Sundial acquired earlier this year, the company’s portfolio will include over 170 cannabis shops and nearly as many booze outlets. Sundial has gone from a failing cannabis producer to one of the top retail pot stocks in the market just by acquiring these two important acquisitions (Alcanna may not close until early next year). Because of this turnaround and the stock’s potential, investors are likely optimistic about Sundial’s future.

It’s Time to Invest in Sundial Growers!

As a meme stock, Sundial Growers (SNDL 1.96 percent) attracts a lot of attention, but it hasn’t had an easy ride on the market. However, the stock has lost about 10% in the last six months, despite a year-to-date gain of 44.7 percent.
Investors should keep a close check on Sundial’s stock because the year 2022 is likely to be less volatile than the year 2021. As of this writing, does the outlook for Sundial stock look better than it has in years? Or does it remain a meme stock that is going nowhere fast?

Is Sundial Growers a Good Investment:

  • Reasons why you should buy now rather than later
  • During the past few years, Sundial has gone through a major transformation and has become an entirely different firm than it was before.

Reddit’s Trader Army attracted a lot of attention to the company’s stock in early 2021, and the company was able to raise a considerable amount of money by issuing new shares and warrants. In other words, it’s becoming a cannabis industry investment bank using the money it’s raised so far.

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It made CA$18.2 million in investment income from its CA$489 million in deployed capital in the first three quarters of 2021. Net cannabis sales revenue was CA$14.4 million in Q3 as a reference. In other words, the company’s investments will continue to be an important source of additional income, but they will not overtake cannabis sales in the long run.

A Massive Influx of Low-cost Paper

Sundial Growers’ tendency to dilute shareholders is one of the greatest criticisms levelled at the company. Over the past two years, Sundial has issued 2,150 percent more shares than any other marijuana stock that has gone public in the last several years, making it one of the fastest-growing companies in the industry.

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Look no farther for the reason why Sundial is currently a penny stock than its constant share issuing. There are currently more than 1.6 billion shares in circulation.

Is Sundial Growers Inc. A Good Investment?

There are multiple warning signs for Sundial Growers Inc.’s stock, and despite the current uptick in price, we expect it to underperform over the next few days or weeks.

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As a result, we have a pessimistic outlook on this stock.

Is There a Future for Sundial Growers?

The acquisition of Alcanna and Sundial’s relationship with the SAF Group are projected to result in revenue substantially in excess of 2021 this year. The cannabis market is expected to increase rapidly in the foreseeable future, which could bode well for Sundial.

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CONCLUSION

As long as pot stocks have been, there has always been a sense of enthusiasm about the expected rise of cannabis companies. The Reddit-fueled stock craze in January was different this year, and Sundial (NASDAQ: SNDL) was briefly elevated out of the penny stock zone.

Is Sundial Growers a Good Investment:

As of July 12, Sundial’s stock was trading at $0.85, prompting the question: Is it a good time to buy Sundial at this point?

Sundial Growers Has a Strong Case in Favour of Its Stock

As the market slump has affected all but a few publicly traded companies, Sundial’s stock isn’t looking so good right now. Reddit-induced stock valuation gains for Sundial earlier this year handed the company a chance that they didn’t waste. By issuing 1.3 billion additional shares, it was able to pay off all of its debts and build up a sizable cash reserve at the same time.

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