Sundial looks very close to a squeeze at this level. It’s normal for the entree to come 4 months after the appetizer and we really could be there! Daily short volume on SNDL is over 50% consistently with 622 million volume on Friday. https://www.shortvolume.com/?t=SNDL
Shorts “short” and cover the same day and especially before the 15th and 30th which are reporting days so that the short interest gets underreported as 13.78% as of May 14th. Regardless of open interest the daily short volume is 50% is why the stock was trading in such a manipulative pattern over the past 3 months. Lots of shorts would merely cover in the afternoon after they all drove the price down. But they took the stock way too low and it’s gonna explode imo. Full disclosure: I have been holding Sundial Growers for over a year.
SNDL seems to be breaking technically after some major accumulation. They have only announced good news since February and killed their last quester. The company reported a very solid 1Q21 with over $1 billion CAD cash on hand, zero debt, operating profit (for the first time) and tons of passive investments including new stakes in The Valens and Inner Spirit stores. Inner Spirit stores used ti carry competitor products, but now they will have much more if not a majority or sundial products for sale going forward.
I was at a Memorial Day party this weekend with a non marijuana crew there were 10mg thc and 1:1 cbd: thc WANA gummies everywhere! (#2 largest US gummy company owned by Indiva which sundial owns 19% of). The tides are changing and weed is becoming the future of entertainment and personal enjoyment. Just wait until it continues to be incorporated into drinks.
Sundial trades at roughly 1.5x book value, is the only vertically integrated weed company from growing to processing to stores, massive amount of passive investments, positive operating profit. Sundial has the fundamentals and technicals to take off here. Not to mention the overdone short manipulation. Anyone who follows the stock knows it was getting shorted in the morning and covered in the afternoon. I’ve never seen so many retail traders short a stock in my life.
To anyone who says too many shares outstanding you do realize the majority of those shares were raised at $1.50? Which traditionally acts as a floor for the stock. Big money doesn’t like to be down for long. Also, Palantir and NIO have 1.88 B and 1.7 B in shares outstanding, just about equal to Sundial’s 1.86 B shares.
Sundial currently has 4.79% Institutional Ownership compared to 15.6% at CGC and 15.38% at ACB. Sundial has a much stronger balance sheet than either CGC or ACB as they stand at 10.6x and 11x book value, respectively while SNDL sits near 1.5x and that doesn’t include the mark-to-mark adjustments that will be made to its investment portfolio with companies like The Valens and Indiva. Institutions will be coming for SNDL hard 🛳
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