- NASDAQ: SNDL has extended its decline from the highs for the second day in a row.
- Monday’s American holiday may be a balanced estimate of Sundial Growers’ fortunes.
- Negotiators can provide fresh impetus on Tuesday, with $ 2 a floor.
How long can a stock stay that high without a correction? Sundail Growers Inc (NASDAQ: SNDL) has fallen for two consecutive days and closes Friday’s trading at $ 2.08, down 12.61% on the day. Nevertheless, the shares of the Calgary-based cannabis company are significantly above the pre-rally level around $ 1 or the securities value seen in early 2021.
Those who ran sundials – and other marijuana stocks – have felt the need to take profits. After rush and correction, where next for SNDL?
SNDL Stock News
The recent downfall puts one new focus on Sundial’s finances. Like its peers, elevated expectations have resulted in significant commitments and a growing pile of debt. The company was forced to restructure its debt back in 2020 as estimates for a lockdown-induced consumption of cannabis could not be realized.
On the other hand, 2021 has brought President Joe Biden with it – and a democratic majority in both chambers of Congress. While the new administration is primarily focused on providing financial relief, several senators, like majority leader Chuck Schumer, support decriminalizing the pot.
The U.S. market is far larger than the Canadian, and despite the growing legalization of weeds in several U.S. states, legal sales have had to compete with the black market for a long time. Hopes of a more relaxed nationwide policy could trigger a new step higher for Sundial and its peers.
At some point, bidders can jump back into the sector, and that includes solar, which, if positioned much better now than in 2020 for further growth – after freeing itself of past economic burdens.
That U.S public holiday Monday may allow traders to find a balance between the parabolic wave and the rapid correction, and perhaps put NASDAQ: SNDL on a better footing.
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