Why Sundial Growers Fell 16.6% This Week
Shares of Canadian cannabis and liquor company SNDL (NASDAQ: SNDL), formerly known as Sundial Growers, fell 16.6% this week through Thursday trading.
It was a tough week for cannabis stocks, especially those in the U.S., which fell even more than SNDL did. The declines had to do with hot money selling out of the sector, following recent buying on hopes that the U.S. Congress would pass Secure and Fair Enforcement (SAFE) Banking Act provisions within the end-of-year National Defense Authorization Act (NDAA) that Congress is about to pass.
However, those hopes were dashed this week, leading to a reversal of recent buying and an abrupt sell-off in the sector. While SNDL currently operates in Canada, it also has some indirect exposure to U.S. cannabis. That's why it fell in sympathy, albeit not as much.
Source Fool.com
