SNDL Stock and Forecast: Sundial Growers Inc falls on Friday, despite three reasons to rise

Update: Friday, February 12: Sundial's price is dialing down – NASDAQ: SNDL has been extending its slide from the highs, with shares changing hands at around $1.89, a slip of over 20%. Shares of the Canadian weed company have been under pressure along with similar stocks. It seems that the Reddit crowd has moved on to other sectors, abandoning pot stocks. Nevertheless, there are other reasons for marijuana stocks to rise – political and other ones. 

Update: Sundial Growers Inc (NASDAQ: SNDL) has been changing hands at around $2.50 on Friday's premarket session, up over 5%. However, this promising rise comes after shares of the Calgary-based cannabis firm dropped by 19% on Thursday after several days of parabolic rises. This much-needed profit-taking allows bargain-seekers to jump in and push the pot stock to new highs. Political developments in Washington are eyed. Follow more stocks news here

Make pot stocks great again – Paraphrasing former President Donald Trump's slogan is relevant to marijuana shares, which are going high. Weed equities are growing rapidly for three main reasons, and Calgary-based Sundial Growers Inc (NASDAQ: SNDL) is one of the beneficiaries. 

1) Retail frenzy: Just as GameStop (GME) dropped back to planet earth, pot shares are rising from the ashes of the previous boom and bust – thanks to retail traders. Interest seen in various forums – not necessarily Reddit's WallStreetBets' are helping pot stocks go high. As these are smaller shares, there may be more room for growth. RobinHood users should be aware of the platform's imposition of limits on buying GME shares when they approach short squeezes, but there may be more room to the upside for now.

2) Better political environment: President Joe Biden is set to push through his $1.9 trillion covid relief bill, with or without support from Republicans. While Democrats have only razor-thin majorities in Congress, if they pass popular measures such as stimulus checks, unemployment benefits and other measures, they would have political capital for more ambitious reforms such as accelerating cannabis legalization. It is essential to note that several lawmakers are already seizing on the opportunity and pushing through new measures. These include Senate Majority leader Chuck Schumer and several other prominent members of the upper chamber. 

3) First US IPO: Canada legalized pot back in 2018 and its larger southern neighbor – with the world's largest economy – has always been the big prize. America's legal marijuana market took two steps forward, one step backward, with financial limitations dogging activity even in states where it was legal. The IPO of Green Thumb is a substantial leap forward. The US Securities and Exchange Commission declared the company's registration as effective. Having a homegrown firm may raise the appeal of other companies. 

SNDL Stock News

Sundial is well-positioned to take advantage of the cannabis industry's fresh appeal – as its finances are better than some of the competition.

That has not gone unnoticed. Shares have surged by over 78% on Wednesday and are set to extend their gains from $2.95 to $4.19 on Thursday, according to premarket trading. In late January, SNDL changed hands at below $1 – a penny stock.

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