Sundial Growers smooth the spike at $0.8000

  • NASDAQ: SNDL fell 6.6% in Tuesday’s trading session.
  • Sundial has postponed its quarterly earnings report until mid-April.
  • Sundial announces the completion of the acquisition of Alcanna.

Update: On Wednesday, Sundial Growers enjoyed good price action in either direction, although it resumed its correction from four-month highs of $0.8914. Sentiment around Sundial remains pessimistic, especially after the company indicated on Tuesday that it would delay filing its fourth-quarter earnings report for up to two weeks. The company, however, said the delay in filing would be the result of the extra work required to comply with SOX. Investors took no comfort in Sundial’s rationale as they hammered the stock price. SNDL stock price closed Wednesday at $0.7182, down about 1% on the day.

NASDAQ: SNDL extended its weekly losses on Tuesday, despite broader markets rallying for the second day in a row. Shares of SNDL fell another 6.59% and closed the trading session at $0.73. The markets recovered again on Tuesday with a much more convincing performance than on Monday. All three major indices jumped again as the Dow Jones added 338 basis points, the S&P 500 gained 1.23% and the NASDAQ climbed 1.84%. The NASDAQ rally continued as big tech once again led the way, while investors showed some relief with growing hopes of a ceasefire between Russia and Ukraine.

Stay up to date with hot stock news!

Sundial said it would delay its fourth quarter and full year 2021 earnings report until April 14 after filing a 6K with the SEC on Tuesday. The delay is due to the impending completion of the Alcanna acquisition, which Sundial says will affect its earnings call. Is it bullish or bearish? It’s too early to tell, but historically, delayed earnings calls haven’t been great for businesses. Even if this is due to an acquisition, investors will continue to watch for continued revenue growth and upbeat forecasts for 2022.

SNDL stock forecast

Sundial also announced on Tuesday that its acquisition of Alcanna Inc. is expected to close on March 31, 2022. Alcanna is a Canadian company that owns several liquor retail brands, including Wine and Beyond and Liquor Depot. Alcanna is Canada’s largest private liquor outlet and gives Sundial a strong foothold in the domestic cannabis and alcoholic beverage markets.

Previous updates

UPDATE: Sundial Growers rebounded from Tuesday’s selloff with its rally higher on Wednesday, advancing 7.1% to $0.777 about 45 minutes into the morning session. That puts it near Monday’s open at $0.786. Now, the main price target has moved to 80 cents, which acted as resistance on Monday. If SNDL breaks above this level, only last week’s high range at $0.89 remains short-term. All three major US indices are down slightly at the time of writing.

Comments are closed.