Sundial Growers’ stock is heading over to the bearish move this year, after subjecting over CA$1.2 billion cash in the last year of 2021. The company has been burning through cash since it started reporting positive adjusted EBITDA in the first quarter of 2016. It spent a total of CA$400 million on acquisitions during the same period. This year, Sundial’s acquisition spree will be crucial to the company’s future. It has already acquired two companies and is in the process of completing another one. In 2021, Sundial Growers’ stock price shot up over 400%, and it ended up outperforming the broad marijuana index.
The market has changed from a bet on US pot law reforms to a strategy to improve operating performance. This is Sundial’s opportunity to take advantage of the new market conditions. The company’s growing popularity with retail investors is another reason why Sundial’s stock price is expected to increase. In 2021, its shares reached a high of $3.76. Unfortunately, Sundial’s stock price is still nowhere near where it should be. Despite the company’s struggles, the entire marijuana industry has been performing better over the past couple of months. A bill that would allow marijuana businesses to operate in the US could help send Sundial Growers and other pot stocks higher.