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

Clear all

Sundial SNDL Stock Acquires another - They will be massive

D. H. Taylor
Member Admin
Joined: 1 year ago
Posts: 305
Topic starter  

Sundial Growers, SNDL Stock, started out with a whole lot of hype that a lot of retail investors bought into.  Sundial Growers were able to raise significant investment capital to build themselves a large base to work with.  But, my biggest complaint with Sundial Growers SNDL stock has always been consistent: the core business is falling short of anything spectacular.

While Sundial Growers has an advantage that they can acquire companies with their cash, and support any business that has not achieved net earnings positive yet, building a core business to work with should simultaneously be a priority.  The advantage that Sundial Growers enjoys right now is that nearly all cannabis stocks are undervalued marijuana stocks.  Any acquisition is done so at below-market rates.

Still, what I find interesting is that Sundial Growers' numbers, its financials, are going to be supported by the acquisitions they make, not their ability to grow, produce, and sell a product.  That seems ironic to me.

Sundial Growers just announced another acquisition of Alcanna, Inc., a liquor retailer that also owns 62% of another cannabis dispensary system.  This gives access to 62 more dispensaries on top of the 100 that Inner Spirit is providing Sundial Growers.  So, Sundial Growers will certainly have access to what is likely the most dispensaries in Canada and, I am betting that Sundial will ultimately close on the remaining 32%.

This is huge.  But, will it help?

One of the knee-jerk reactions I had to this was that Alcanna may not have revenue growth rates that are impressive simply because alcohol sales are anything but impressive from a growth standpoint.  But, this does give Sundial Growers those 62 other dispensaries.  That is where the growth will be.


Leave a reply

Author Name

Author Email

Title *

Maximum allowed file size is 10MB

Preview 0 Revisions Saved