If your looking for the best penny stocks to buy right now, then volume is probably something you’re monitoring. Which stocks have unusual volume, irregular options activity, or catalysts to watch right now? With a pending vote on the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, marijuana stocks have lit up scanners this week.
Key industry ETFs including the Advisor Shares Pure Cannabis ETF (NYSE: MSOS) and the Alternative Harvest ETF (NYSE: MJ), are skyrocketed over the last few weeks leading up to the vote. With a strong penchant for high risk, marijuana stock investors have flocked back to the beaten-down sector.
What’s Going On With SNDL Stock?
One of the most popular marijuana penny stocks, Sundial Growers (NASDAQ: SNDL) has followed suit. Since March 15th, shares of SNDL stock have exploded from around $0.45 to recent highs of $0.8914. Updated earnings release dates and bullish industry sentiment have helped spark this latest move. But what comes next, and what’s going on with SNDL stock right now?
SNDL Stock News
First, the bad news: Sundial delayed its earnings again. The company said it expects to report Q4 figures around April 14th. While this put some brakes on the SNDL stock rally, it wasn’t causing major concern based on the March stock chart.
The potentially good news: there are more details on its Alcanna acquisition. Sundial has been involved with this merger deal since last year. The issue has been that the closing date continues getting extended. But the last extension wasn’t that major, and, ultimately, this Sundial-Alcanna deal was closed before the start of Q2. In a $255.55 million stock and cash deal, Alcanna will get folded into the Sundial organization. Its Nova Cannabis subsidiary owns or operates just under 80 cannabis retail stores in Canada under the “Value Buds” brand. Combined with Sundial’s “Spiritleaf” operations, the company operates a retail network with more than 180 locations.
SNDL Earnings Outlook
With the completion of this acquisition behind them, the next point of interest will be the upcoming earnings later this month. As a reference point, here’s CFO Jim Keough’s summary of Sundial’s last earnings performance:
“We are pleased that for the third quarter of 2021, adjusted EBITDA from continuing operations was $10.5 million, compared to a loss of $4.4 million for the third quarter of 2020…Net earnings for the three months ended September 30, 2021, was $11.3 million, compared to a net loss of $71.4 million in the previous year.”
Sundial Growers remains one of the top marijuana penny stocks to watch. One of the most significant points of focus is simply due to the idea that it is one of the few cannabis stocks under $1 that can trade on apps like Robinhood and Webull. Since these platforms discourage and block access to OTC stocks – including OTC penny stocks – buying pot stocks is restricted to only NASDAQ & NYSE listed companies.
SNDL Stock Short Interest & Options Flow
As we’ve recently discussed, short interest and options data are a few things traders look for in identifying specific opportunities with penny stocks. As far as SNDL stock is concerned, it’s one of the more active names based on its options chain. Some of the most active strike prices and expiration dates are the $1, $1.50, and $2 Call options at the April 8, 2022, April 14, 2022, and January 20, 2023 expiration dates. Open interest in several is more than 160,000 as of this article.
Is SNDL one of the short squeeze penny stocks to watch? If you look at data from Fintel.IO and even TD Ameritrade, the current short float percentage on this marijuana stock is right around 12%. It isn’t one of the stocks with the highest short interest. But it could be worth noting, all the same.
Should You Buy SNDL Stock?
When it comes to deciding to trade penny stocks, the choice is yours. It’s important to use things like market data, news, filings, and even short interest to formulate a trading thesis. In the case of SNDL stock, there are more than just company headlines driving stock market volatility. If this is one of the names on your penny stocks list right now, the outcome of the MORE Act vote in the Senate could be an essential thing to keep in mind now that it has passed the House.