Welcome to the Cannabis Investing Newsletter Forum. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of and analysis of cannabis stocks. – D. H. Taylor
Sundial Growers SNDL Stock Acquisitions and Growth
SNDL Stock, I am not a big fan of Sundial Growers, much to the chagrin of some investors and followers. Sundial is sitting on a mountain of cash - $750M - and has begun the process of deploying that cash to expand its footprint. However, revenue growth is paltry during a time when the rest of the country is seeing increased retail sales for cannabis products. The excuse: COVID; everybody's excuse for failure. However, and as I just mentioned, Canada is seeing ever-rising increases in retail sales of cannabis... during COVID; the excuse is simply that and holds no sway with me.
Despite that, recent acquisitions, and the potential for more, are adding to an element of possibility and intrigue. Whereas Sundial's core business just saw a decline in revenue and have some of the worst margins in all of cannabis, -33%... as in negative 33 percent gross margins, they recently acquired Inner Spirit Holdings, a dispensary chain in Canada which will have some +100 stores by the end of this year and likely far more beyond that in years to come. I was bullish on Inner Spirit; they were one of my Top Picks.