Sundial Growers (NASDAQ:SNDL) Continues to Underperform: Time to Buy?
4:11 am Thursday, July 22nd, 2021
Investors are almost always attracted to cash-rich companies and one such company in the cannabis sector at this point is Sundial Growers (NASDAQ:SNDL). The stock has performed strongly in 2021 as well and has managed to clock gains of as much as 70% so far.
The stock has not only outpaced the wider cannabis sector in terms of gains but also the S&P 500 index. The bullish investors seem to be in control of the stock at this point and it is easy to see why. The company acquired the cannabis retail network Inner Spirit in Canada and has also made progress in tying up the joint venture with SAF Group that will be financing cannabis projects across the world.
On the other hand, the first-quarter performance from Sundial was also a major positive for the company as it managed to generate a positive EBITDA for the first time.
Despite the considerable progress made by the company this year so far, Sundial remains an unprofitable company and that is something that investors need to keep in mind. That being said, Sundial is a cash-rich company and currently boasts of a cash pile of $1 billion. That is something that could help Sundial in financing its growth without worrying about immediate profits.
