I want to start off by saying this opinion on SNDL is referenced to GME and other reddit stocks all related to Wall Street bets. SNDL has been extremely volatile these last six months and in my opinion will continue to be as the reddit craze continues. SNDL is still up 340% even after shedding more than 50% of its value in a month. These times have brought about many winners and losers in the market but if you look at GME which was on the verge of bankruptcy and being over shorted GME has capitalized by now reinventing themselves with new strategy in infrastructure and have appointed a new CEO for the coming times ahead.
Today GME hit a high of $343 displaying again the buying power from the individual investor being able to outweigh institutional bears. This changes the dynamics of trading when it comes to these reddit stock selections as it is no longer based on fundamentals but the volume in the market that it trades at. This challenges everything we know that is based on core financial data and is what also makes these investments so risky. However this pattern of trading in Its self is what causes these short squeezes identifying the companies being over shorted or even possibly counted out on purpose. This is done long enough to expire option contracts that are heavily shorting the stock to begin with. Again not based on profitability fundamentals for the company but the ability for retail investors to buy and hold shares long enough to cause the short squeeze exactly like we have seen several times with GME in particular.
I believe these methods can and will be repeated until some form of regulations occur but as I said there a lot of winners and losers in these events not just the individual investors but institutions as well. SNDL has been #1 and top 3 on volume trading over the last few months above AAPL and TSLA by a long shot even reaching past 1B in volume when SNDL's short squeezed occurred soaring it past $4 a share.
Currently trading a $1.31. a share SNDL is cash heavy at the moment in the upward parts of 670 Million dollars all from recent liquidation of the recent reddit craze that caused the short squeeze allowing them to take major profits. I see this as innovative and necessary as they have been burning cash fundamentally on constant decline.
However SNDL's has cleared their books recently and operate debt free with cash heavy stability also acquiring a strategic $22 million stake in (NDVAF) a cannabis infused edible company that is poised to profit from the edibles market that could exceed $11.5B by 2025.
SNDL has its earnings date set for March 17th 2021 to announce full year and quarter four of 2020 which will be negative but I believe the discussions for the cash heavy company to make acquisitions and further adjustments to capitalize off the recent spike in share price.
Something else notable is that currently there is a unusual options activity alert for SNDL at a strike price of $0.50 with an expiration date of 2021-03-19 my assessment is that bears are looking to profit off the fundamental reason this company should correct because the profitability is just not there on the books. This leads back to my point Reddit stock selections and Wall Street bets are always trading at retail value and will continue to purchase the ask price as this apart of the method for the short squeeze to occur.
Essentially this is a stock war and only the ones with the stomach for this will profit from this but this is definitely something to consider when It comes to identifying the short squeeze before it occurs. I am long in this because I believe the company has the capital to sustain them selfs for years to come and will make necessary adjustments and acquisitions to gain profitability. Also a big X factor is new legislation being passed in the United States and with more traction and awareness then ever the path to legality for recreational marijuana is not far off and in many deciding states is already a reality. With this will come a boom inside the cannabis industry as we have already witnessed in recent events and will continue to unfold in the near future.
*Disclaimer
This is not financial advice
Today GME hit a high of $343 displaying again the buying power from the individual investor being able to outweigh institutional bears. This changes the dynamics of trading when it comes to these reddit stock selections as it is no longer based on fundamentals but the volume in the market that it trades at. This challenges everything we know that is based on core financial data and is what also makes these investments so risky. However this pattern of trading in Its self is what causes these short squeezes identifying the companies being over shorted or even possibly counted out on purpose. This is done long enough to expire option contracts that are heavily shorting the stock to begin with. Again not based on profitability fundamentals for the company but the ability for retail investors to buy and hold shares long enough to cause the short squeeze exactly like we have seen several times with GME in particular.
I believe these methods can and will be repeated until some form of regulations occur but as I said there a lot of winners and losers in these events not just the individual investors but institutions as well. SNDL has been #1 and top 3 on volume trading over the last few months above AAPL and TSLA by a long shot even reaching past 1B in volume when SNDL's short squeezed occurred soaring it past $4 a share.
Currently trading a $1.31. a share SNDL is cash heavy at the moment in the upward parts of 670 Million dollars all from recent liquidation of the recent reddit craze that caused the short squeeze allowing them to take major profits. I see this as innovative and necessary as they have been burning cash fundamentally on constant decline.
However SNDL's has cleared their books recently and operate debt free with cash heavy stability also acquiring a strategic $22 million stake in (NDVAF) a cannabis infused edible company that is poised to profit from the edibles market that could exceed $11.5B by 2025.
SNDL has its earnings date set for March 17th 2021 to announce full year and quarter four of 2020 which will be negative but I believe the discussions for the cash heavy company to make acquisitions and further adjustments to capitalize off the recent spike in share price.
Something else notable is that currently there is a unusual options activity alert for SNDL at a strike price of $0.50 with an expiration date of 2021-03-19 my assessment is that bears are looking to profit off the fundamental reason this company should correct because the profitability is just not there on the books. This leads back to my point Reddit stock selections and Wall Street bets are always trading at retail value and will continue to purchase the ask price as this apart of the method for the short squeeze to occur.
Essentially this is a stock war and only the ones with the stomach for this will profit from this but this is definitely something to consider when It comes to identifying the short squeeze before it occurs. I am long in this because I believe the company has the capital to sustain them selfs for years to come and will make necessary adjustments and acquisitions to gain profitability. Also a big X factor is new legislation being passed in the United States and with more traction and awareness then ever the path to legality for recreational marijuana is not far off and in many deciding states is already a reality. With this will come a boom inside the cannabis industry as we have already witnessed in recent events and will continue to unfold in the near future.
*Disclaimer
This is not financial advice
