In addition to being a penny stock, Canadian cannabis producer Sundial Growers (NASDAQ:SNDL) has been one of this year’s most-popular meme trades. That, of course, is a recipe for volatility. So far this month, we’ve seen SNDL stock shoot up nearly 50% in just two weeks, only to give back more than half its gains.
The recent run-up was due in part to the release of the company’s third-quarter results last week.
It’s not without justification either, as so many of these speculative spikes have been. Recently, Sundial disclosed a favorable earnings performance in the third quarter, reporting net income of 11.3 million CAD ($9 million) and positive adjusted EBITDA of 10.5 million CAD (about $8.3 million). Given that prior poor quarterly performances have dogged SNDL stock, this was welcome news.
Another factor to point out is that Sundial has been acquisitive lately. Sundial…