Sundial Growers (SNDL) Stock Drops Over 5% This Week: Consider Investing When It’s Low On Price?

Since September, various sectors such as marijuana stocks have experienced significant volatility. The S&P 500 has fallen 2%, while the Horizons Marijuana Life Sciences ETF has dropped 9%. SNDL stock dropped 4.6% yesterday with the price of $0.673, as of today, it rose 1.18% to the price of $0.681. Last year, Reddit users turned Sundial Growers, which is a pot producer, into a stock meme. This week, its stock price has fallen to its lowest level in almost a month.

Since many companies in the marijuana industry are not profitable, they are often risky investments. Sundial Growers has a significant amount of cash and is well-equipped to weather the storm. As of August 9, the company had about 760 million Canadian dollars in cash. Despite posting losses over the past 12 months, its operating cash burn was only about CA$137 million. Sundial Growers is valued at more than 21 times its revenue. Its stock price has also grown significantly beyond its earnings. Even if the stock’s price gets significantly higher, investors still need to consider the effect of warrants on the stock’s price.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.