Is cannabis the next target for stock traders? (SGMD, TLRY, CGC, SNDL, GRWG, ACB)
The so-called âMeme Stockâ revolution is upon us. Retail investors and social media trading âgangsâ are ganging up on the shorts and bears of institutional hedge funds with massive implications for the publicly traded stock market.
We’ve seen it take undeniable form in stocks like GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) over the past few weeks and months. We have also seen suspicions of the same phenomenon in the cannabis space. One could also highlight the popularity of a number of stocks in this space on the r / WallStreetBets Reddit platform, which has been something like Ground Zero for stock dynamics even.
It should also be noted that the notion of âoutsider growth themeâ is a sort of idea of ââspiritual reference which seems to underlie this phenomenon. And you could say that the cannabis space resonates with this idea in a powerful way. The global space is growing with gangbusters and has been for years. Experts continue to place it at or near the top of the industry growth rankings.
Grand View Research recently released a new analysis, noting that the global legal marijuana market size was valued at $ 9.1 billion in 2020 and is now expected to grow at a compound annual growth rate (CAGR) of 26.7 % from 2021 to 2028, suggesting space could be worth over $ 60 billion at that time.
This has strong implications for space stocks, including Aurora Cannabis Inc (NYSE: ACB), Canopy Growth Corp (NASDAQ: CGC), Tilray Inc (NASDAQ: TLRY), GrowGeneration (NASDAQ: GRWG), Sugarmade Inc (OTCMKTS: SGMD) and Sundial Growers (NASDAQ: SNDL).
We take a closer look at several of the more interesting players below.
Sundial Growers Inc (NASDAQ: SNDL) is a licensed producer who manufactures cannabis using state-of-the-art indoor facilities. The title was one of the momentum favorites earlier this year, but it has come down sharply and now has significant levels of support on the line.
Sundial’s brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. Our experience with consumer packaged goods allows us not only to grow quality cannabis, but also to create exceptional consumer and customer experiences.
Sundial Growers Inc (NASDAQ: SNDL) recently announced, together with Inner Spirit Holdings Ltd (OTCQB: INSHF), that the two companies have entered into an arrangement agreement under which Sundial will acquire all of the issued and outstanding common shares of Inner Spirit for a total consideration of approximately $ 131 million. According to the statement, the combined company will continue to focus on providing quality cannabis to consumers through a responsible and disciplined approach while creating lasting value for shareholders.
âSundial is becoming a stronger and more diverse cannabis business by acquiring Inner Spirit and the Spiritleaf retail store network,â said Zach George, CEO of Sundial. âInner Spirit has successfully created a franchise retail network that has grown from coast to coast to deliver a differentiated and premium in-store experience to consumers. Our shared Alberta roots and our commitment to data-driven consumer insights make for an ideal partnership. Sundial’s capital base will allow us to support the continued expansion and deepen the capabilities of the Spiritleaf retail brand.
It will be interesting to see if the title can break out of its recent side action. Over the past week, the stock is net flat and looking for something new to trigger things. Shares of the stock have risen over the past month, rallying around 54% in that timeframe on strong global action.
Sundial Growers Inc (NASDAQ: SNDL) managed to generate revenue totaling $ 7.8 million in overall sales in the company’s latest quarterly financial data, a figure that represents a revenue growth rate of -54 , 4%, compared to last year. data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($ 721.7 million versus $ 77.1 million).
Sugarmade Inc (OTCMKTS: SGMD) is in a privileged position to become an increasingly visible player in the cannabis space in the coming months given its advantageous execution as a rapidly growing force in the cannabis delivery market in California until present this year thanks to his major interest in BudCars, one of the players in the delivery of cannabis vertically integrated in the space.
SGMD is a product and brand marketing company that invests in potentially disruptive operations and technologies. Its brand portfolio includes CarryOutsupplies.com, SugarRush â¢, Nug Avenue and Budcars.com.
Sugarmade Inc (OTCMKTS: SGMD) announced earlier this morning the signing of a Memorandum of Understanding (the âMOUâ) to obtain three California non-showcase cannabis licenses from the Los Angeles Department of Cannabis Regulation, as well as corresponding licenses from the California Bureau of Cannabis Control, which collectively provides the licensing basis for the opening of three (3) new Nug Avenue cannabis delivery centers in the Los Angeles metro area.
Under the terms of the MOU, the Company will control a joint venture created with the original social equity licensee from the closing date of the definitive agreement.
Each of the three licenses may be used for three of the five categories of licensed cannabis-related business activities permitted under those licenses: retail delivery, manufacturing, distribution, transportation only, and cultivation. The Company has determined that it will most likely use each license for a combination of 1) retail delivery of cannabis products, 2) distribution in the cannabis products supply chain and 3) manufacturing / packaging cannabis products.
Together, these licenses form the licensing basis for the opening of three (3) new Nug Avenue locations in the Los Angeles metro area.
âOur first location on Nug Avenue was a huge success, but we have to grow due to overwhelming demand,â commented Jimmy Chan, CEO of Sugarmade. âHolding these licenses will provide an optimal solution to our current growth limitations. “
Shares of Sugarmade Inc (OTCMKTS: SGMD) have performed well over the past five days, up about 17% during that time. The stock’s shares have risen over the past month, rallying around 35% in that timeframe on strong global action.
GrowGeneration Corp (OTCMKTS: GRWG) proclaims itself a company that owns and operates retail hydroponic and organic gardening stores in the United States.
The company has grown rapidly through a series of key strategic actions and now offers and sells thousands of products, including organic and soil nutrients, cutting-edge lighting technology and cutting-edge hydroponic equipment for use. indoors and outdoors by commercial and domestic producers.
GRWG recently announced a new partnership with Belushi’s Farm to equip its new greenhouse. Based in Oregon, Belushi’s Farm was founded in 2015 by artist Jim Belushi to cultivate premium medical and recreational cannabis, producing iconic brands such as Belushi’s Secret Stash, The Blues Brothers and Captain Jack’s (also known as the name of “The Smell of SNL”).
âWe spent several weeks in the field in Oregon working with Jim and his exceptional team at Belushi’s Farm to work on plans and visit our outlets for premium supplies,â said Jeremy Corrao, vice-president. president of business operations at GrowGeneration. âOur team of grow professionals are experts in cannabis cultivation techniques, and we are delighted to support Jim’s vision with the unmatched supplies and services from GrowGeneration.â
Even in light of this news, GRWG hasn’t really done much over the past week, with stocks seeing no net movement during that time. GrowGeneration Corp (OTCMKTS: GRWG) managed to generate revenue totaling $ 90 million in overall sales in the company’s latest quarterly financial data – a figure that represents a revenue growth rate of 172.9% , compared to last year’s data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($ 133.1 million versus $ 45.7 million).