Is Sundial Growers (NASDAQ:SNDL) A Good Investment Bet For 2021?
4:51 pm Wednesday, June 30th, 2021
2021 has not been as bad a year as 2020 for many cannabis stocks so far and hence, it might be a good idea for investors to possibly start looking into some of the stocks from the sector. One of the cannabis stocks that could be tracked by investors at this point in time is that of Sundial Growers (NASDAQ:SNDL).
The stock has not performed well and has in fact struggled to keep its share price above the $1 mark, a necessary requirement for staying listed on NASDAQ. However, all might not be lost and there are some factors that might help the Sundial stock in making a strong comeback eventually. One of the more important recent developments relates to a joint venture that has been formed by Sundial with SAF Group, a private equity firm based out of Canada.
This joint venture is going to be involved in investing in and financing Cannabis companies operating out of Canada and other parts of North America. The ultimate target of the venture is to take these companies public. Considering the fact that Sundial boasts of a cash pile of $753 million, this move could well prove to be a good move from the company.
On the other hand, it gives the company the chance to invest in the United States cannabis industry at a very early stage. While it is true that risks remain with regards to the success of this venture, it needs to be remembered that it could potentially be a good move if Sundial can make the right investments.
