As the darling of Reddit and Robinhood traders alike, Sundial Growers is frequently the butt of investing jokes, and it’s no surprise why.
Still, the stock’s popularity with retail traders led it to grow by roughly 79% over the last 12 months, so it’s reasonable to think that there might be something worth investigating further.
There are a few reasons why it might be a good idea to buy Sundial’s stock, starting with its latest earnings report from the first quarter of 2021.
By the end of the summer, the company hopes to have a network of 100 stores distributing its products across all but one of the provinces of Canada, thanks to the purchase.
Finally, it’s important to recognize that Sundial’s cash position of $1.08 billion is outrageously strong, especially considering that it has no outstanding debt.
First and foremost, compared to the prior quarter and compared to the same quarter in 2020, in the first three months of 2021, net cannabis revenue dropped by 29%.
Its margins may not necessarily improve much without changing its product mix to prioritize goods with higher selling prices, which management has signaled is a work in process.
At least for the moment, it hasn’t shown any clear positive trend of revenue growth or margin growth.
If you’re willing to make a speculative purchase in which you’re comfortable with losing money in the short term, buy Sundial stock this summer.