Is Cash a Problem for Sundial Growers?
In the past month, shares of Sundial Growers (NASDAQ: SNDL) have soared more than 235%, while the S&P 500 is up by just 2%. The stock got a boost around the same time retail investors were buying up GameStop and other risky investments. Despite poor sales numbers and a lack of profitability, speculators have been bullish on a potential merger or acquisition involving Sundial, which has given the stock lots of momentum. And Sundial's management have capitalized on the hype, announcing not one but two offerings since the initial surge in price.
Is this a sign of trouble and that Sundial is running low on cash, or could the company be working on something bigger? Let's take a closer look at its business and financial health to determine the possible motivation behind these latest moves.
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Source Fool.com
