Is SNDL Stock a Buy Now?
Nearly two years after its stock took a meme-driven trip to the moon and back in early 2021, SNDL (NASDAQ: SNDL) is starting to look like a serious contender. While its shares are down by more than 90% since late 2019, the former Canadian marijuana pure play now sells both cannabis and liquor. It also invests in marijuana companies, typically in the U.S.
What's more, management remains busy with spending and investing its war chest of $985.8 million Canadian dollars ($725 million) in cash and equivalents. It produced this by issuing new shares of stock while meme mania was at its peak. But does that make the stock a buy today, given its penchant for unprofitable growth via acquisitions? Let's investigate.
The biggest question for SNDL, at the moment, is whether its latest strategic play will be a major advancement that puts it on the path to Canadian market dominance. On Aug. 22, SNDL said that it would be acquiring Valens Co., another vertically integrated Canadian cannabis business.
Source Fool.com
