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  • 30+ Best Penny Stocks Under To Buy for Long-Term

    30+ Best Penny Stocks Under $5 To Buy for Long-Term

    Stocks trading under the $5 mark, which are known as penny stocks, are usually favored by retail investors. Since penny stocks are highly volatile, they provide good opportunities for making short-term gains.

    However, upon closer inspection of penny stocks, one might be able to find cheap stocks with a strong profile and great market opportunity. Such stocks can prove to be very fruitful in the long term.

    Given that these stocks are near the lower end of their trajectory, they come with huge upside potential. There is a real possibility that they would blow up in the coming years and bag huge profits for their holders.

    Advantages and Disadvantages of Penny Stocks

    Advantages

    • High Potential Returns

      Penny stocks can provide substantial returns if invested wisely, as their low prices allow for significant price appreciation.

    • Accessible Entry Point

      Individuals with limited capital can enter the stock market with penny stocks, as they are more affordable than higher-priced stocks.

    • Market Volatility Opportunities

      The inherent volatility of penny stocks can present opportunities for short-term traders looking to profit from rapid price movements.

    Disadvantages

    • Lack of Liquidity

      Penny stocks often lack liquidity, making it challenging to buy or sell large quantities without affecting the stock price.

    • Higher Risk

      Penny stocks are associated with higher risk due to their susceptibility to market manipulation, lack of regulatory oversight, and potential for sudden price declines.

    • Limited Information Availability

      Compared to larger stocks, penny stocks may have limited financial information and analyst coverage, making it harder to assess their true value.

    Best Stocks Under $5 To Buy for Long-Term

    We have compiled a list of the 30+ best penny stocks under $5 with promising profiles and market opportunities. Investing in these stocks and holding them for the long term just might give your portfolio the boost it needs.

    Best Stocks Under 5 To Buy for Long-Term

    SNDL Inc. (SNDL)

    The first of the penny stocks under $5, which we present, is a diversified cannabis play, SNDL Inc. (SNDL).

    Formerly known as Sundial Growers Inc., SNDL is a Canada-based cannabis producer which has extended its reach into the alcohol industry.

    It now also operates retail pot shops across Canada after going through multiple acquisitions in the past year and a half.

    SNDL has been strategically diversifying its business beyond organic cannabis production to ensure its long-term success.

    In January 2023, it completed the acquisition of Valens, a move that transformed the company into a vertically integrated Canadian powerhouse.

    With a wide range of brands, a network of 197 cannabis retail stores, and cost-effective biomass sourcing, cultivation, and manufacturing facilities, SNDL has positioned itself as one of Canada’s largest manufacturers and retailers of adult-use cannabis.

    Since the Valens acquisition, SNDL has already achieved impressive cost savings, surpassing its original target of $10 million. Annual savings of over $13 million have been realized, with an additional $5 million expected in 2023.

    By 2024, synergies are projected to reach an annual run rate of over $30 million, complemented by $9 million in proceeds from asset sales.

    Furthermore, SNDL’s proposed strategic partnership with Nova Cannabis Inc., in which SNDL holds a 63% ownership stake, has been approved by Nova’s shareholders.

    This partnership aims to establish a well-capitalized cannabis retail platform, leveraging SNDL’s expertise and resources. The Nova Restructuring is set to conclude by the end of June 2023.

    With a solid financial position and long-term investments totaling CAD 900 million, SNDL appears to be on a promising trajectory.

    The company has the potential to become a leading cannabis provider in Canada over the next decade. Patient investors may find substantial returns in SNDL, especially considering its current stock price below $5.

    Additionally, Wall Street analysts suggest a near-term price target that implies an attractive 172.8% upside potential.

    Terran Orbital Corporation (LLAP)

    Terran Orbital Corporation (LLAP) is a technology company in the space industry that’s known for producing satellites. This has become an increasingly attractive field thanks to a recent wave of merger and acquisition activity in the industry.

    Terran Orbital has recently announced the successful completion of CAPSTONE’s primary mission, marking a significant milestone in space exploration.

    CAPSTONE effectively navigated to and within the Near Rectilinear Halo Orbit (NRHO), showcasing its advanced capabilities.

    It also conducted a groundbreaking test of the Cislunar Autonomous Positioning System (CAPS) in collaboration with NASA’s Lunar Reconnaissance Orbiter (LRO).

    Moreover, CAPSTONE captured remarkable images of the Moon, adding to its list of achievements.

    Since entering NRHO, the CAPSTONE mission has accomplished several noteworthy milestones, including 28 successful orbits and seven on-orbit maneuvers.

    Additionally, it published 89 precise orbit-determination navigation solutions, further enhancing the understanding of celestial bodies.

    The mission collected over 315,000 measurements through the Deep Space Network, utilizing the facilities at Morehead State University, which played a crucial role in supporting the mission.

    Another remarkable aspect of the CAPSTONE mission was its observation of six lunar eclipses, with the longest lasting an impressive 74.32 minutes.

    These achievements reflect Terran’s dedication to pushing the boundaries of space exploration and its commitment to collaboration with industry partners like Lockheed Martin.

    penny stocks under $5: Terran Orbital Corporation (LLAP)

    While Terran’s market capitalization stands at approximately $180 million, profitability remains a challenge.

    However, with the potential for increased revenue generation and ongoing partnerships, such as the one with Lockheed Martin, Terran may soon experience positive earnings per share.

    This represents a significant step forward for the company and underscores its potential for future success.

    In fact, Wall Street anticipates the stock to surge by a mammoth 415% over the next 12 months. With such huge upside potential and a promising pipeline, it stands firm among our pick of penny stocks under $5 for long-term investment.

    Vivakor Inc. (VIVK)

    Up next on our list of penny stocks under $5 is an American company, Vivakor Inc. (VIVK). Vivakor specializes in clean energy technologies and environmental solutions including soil remediation.

    With the increasing awareness of the need for clean energy solutions, investments are rising in the sector. Thus, the clean energy technology market is growing at a rapid pace and the market opportunity is huge.

    Overall, the energy industry is seeing some strong tailwinds which are contributing to a huge rise in the energy stock trend.

    In just one year at close of the fiscal 2022 in December, its revenue skyrocketed to $28.1 million, a remarkable leap from $1.1 million the previous year.

    This extraordinary growth was primarily driven by the significant increase in sales of oil and natural gas liquids, thanks to its recent acquisitions of Silver Fuels Delhi, LLC.

    Furthermore, its gross profit for the same period rose to $2.9 million, compared to a stagnant $0.0 million in the previous year.

    As a result, its gross margin for the twelve months ended December 31, 2022, stood at an impressive 10.2%, significantly higher than the 3.5% recorded for the twelve months ended December 31, 2021.

    Currently, at a distance of just -2.32%, the stock has yet to break and hold above its 50-day moving average, it has been gaining traction year to date at 9.02%. The energy industry is gaining huge popularity and clean energy even more so.

    And Vivakor is capitalizing well on this market opportunity. All in all, Vivakor presents a great buy right now with the potential to bag huge amounts of profits in the future.

    Ambev SA (ABEV)

    Next in the line of penny stocks under $5 is a Brazil-based brewing company, Ambev SA (ABEV). Ambev has operations in 18 countries in South America and the Caribbean.

    It produces and distributes beer, soft drinks, and other non-alcoholic beverages. Given that 62% of the company is owned by Anheuser-Bush InBev, Ambev is essentially a business unit of the world’s largest brewing company.

    Both companies have been struggling due to the pandemic, but the reopening tailwinds have put Ambev back on track. However, the macroeconomic conditions have resulted in a considerable rise in commodity prices.

    But despite this, the brewer has been able to improve margins due to its strong pricing power. On the financial front, the company is doing pretty well.

    In the first quarter of 2023, Ambev delivered a 15.24% year-over-year improvement in profits on solid net revenue growth. During the quarter net income was BRL 3.70 billion, while the net revenue grew by nearly 11.35%.

    The organic EBITDA also marked a nice improvement of 8.5% year-over-year. Meanwhile, Ambev’s stock trades at a nice forward price-to-earnings ratio of 16.02.

    Add to this a dividend yield of 4.83% and you have got a penny stock worth buying for the long term. At a price of just under $3, ABEV is worth investing in.

    Broadwind (BWEN)

    The last of the penny stocks under $5 on our list is Broadwind (BWEN). Broadwind is one of the leading fabricators of equipment and components across different energy sectors.

    It covers both renewables and non-renewable, thus, diversifying its offerings in the broader energy industry.

    In the renewables sector, Broadwind focuses on wind power. It claims to be one of the first producers of 100-meter wind turbine towers in the U.S.

    Broadwind has excelled operationally and commercially, building a leading precision manufacturing platform.

    The company aims for organic growth in existing and adjacent markets, diversifying its revenue mix beyond wind, optimizing assets, and managing capital wisely.

    Over the past three years, Broadwind pursued an aggressive strategy, securing an $8 million order for its Mobile Pressure Reducing Systems (PRS) and expanding into new customer relationships.

    The company expects its clean fuels product offering to contribute 10% of total revenue by 2025. Non-wind revenue has grown by 45% since 2018, reaching a record $91.6 million in 2022, with continued growth in 2023.

    Broadwind aims to optimize its assets for better economies of scale by leveraging lean operating practices and focusing on high-return manufacturing processes.

    Furthermore, Broadwind came out with total revenue of $48.9 million in the first quarter of 2023. This marked a double-digit increase of 17% year-over-year due to the fast pace of the wind market as the wind market started recovering this year.

    penny stocks under $5: Broadwind (BWEN)

    The company’s backlog also showed a nice improvement of over $170 million. All in all, with the renewable market regaining traction and making a recovery, Broadwind is well-placed to capitalize on the opportunity.

    Therefore, to buy stocks under $5, this energy industry penny stock has great potential to bag some nice gains over the long run.

    In addition, we have compiled a list of 35 of the best stocks to buy under $5 you can consider in 2023.

    No. Ticker Company Performance (YTD) 50-Day Simple Moving Average Price
    1 QBTS D-Wave Quantum Inc. 79.06% 244.73% 2.58
    2 WLDS Wearable Devices Ltd. 339.95% 167.78% 1.92
    3 EFTR eFFECTOR Therapeutics, Inc. 229.75% 157.73% 1.41
    4 FRZA Forza X1, Inc. 119.53% 118.95% 2.81
    5 UTME UTime Limited 152.10% 109.25% 2.25
    6 DHC Diversified Healthcare Trust 250.19% 103.96% 2.27
    7 BVS Bioventus Inc. 13.99% 101.44% 2.98
    8 CNTX Context Therapeutics Inc. 97.94% 93.49% 1.29
    9 CRVS Corvus Pharmaceuticals, Inc. 291.76% 91.50% 3.33
    10 RGTI Rigetti Computing, Inc. 54.28% 87.54% 1.12
    11 RMTI Rockwell Medical, Inc. 323.15% 74.47% 4.3
    12 CNSP CNS Pharmaceuticals, Inc. 12.50% 72.20% 2.7
    13 CGEN Compugen Ltd. 77.43% 71.33% 1.27
    14 GRCL Gracell Biotechnologies Inc. 59.13% 70.76% 3.66
    15 LTCH Latch, Inc. 93.20% 67.90% 1.37
    16 MPLN MultiPlan Corporation 61.30% 66.99% 1.86
    17 KOPN Kopin Corporation 66.94% 66.49% 2.07
    18 TSP TuSimple Holdings Inc. 41.98% 64.67% 2.33
    19 ORGO Organogenesis Holdings Inc. 56.88% 63.34% 4.22
    20 INTR Inter & Co, Inc. 38.82% 61.72% 3.29
    21 BIOR Biora Therapeutics, Inc. 50.95% 58.50% 4.97
    22 OTLK Outlook Therapeutics, Inc. 74.07% 55.24% 1.88
    23 UBX Unity Biotechnology, Inc. 28.83% 48.44% 3.53
    24 GMDA Gamida Cell Ltd. 76.36% 47.45% 2.28
    25 FFIE Faraday Future Intelligent Electric Inc. 25.73% 46.09% 0.37
    26 REKR Rekor Systems, Inc. 54.17% 44.65% 1.85
    27 REAL The RealReal, Inc. 43.32% 43.93% 1.79
    28 MDVL MedAvail Holdings, Inc. 18.41% 43.77% 0.35
    29 GOL Gol Linhas Aereas Inteligentes S.A. 52.06% 42.71% 4.06
    30 AKBA Akebia Therapeutics, Inc. 116.64% 41.37% 1.25
    31 CBAT CBAK Energy Technology, Inc. 22.22% 40.32% 1.21
    32 XFOR X4 Pharmaceuticals, Inc. 110.05% 39.09% 2.09
    33 BTBT Bit Digital, Inc. 387.50% 38.84% 2.92
    34 AMRX Amneal Pharmaceuticals, Inc. 28.39% 38.74% 2.56
    35 AAOI Applied Optoelectronics, Inc. 44.44% 36.93% 2.73

    Best Online Brokers for Stocks Under $5

    When investing in penny stocks, it is crucial to choose a reliable online broker that offers the necessary tools and services for trading such securities. Some of the best online brokers for the best stocks to buy under $5 include:

    TD Ameritrade: Empowering Novices with Unparalleled Investment Resources

    TD Ameritrade comes highly recommended for newcomers, thanks to its vast wealth of knowledge, empowering investors as they venture into the realm of financial opportunities.

    The platform boasts a diverse range of educational resources, encompassing an extensive collection of 200+ instructional videos and tutorials.

    Ensuring a judgment-free environment, TD Ameritrade welcomes and encourages investment-related inquiries from beginners.

    They extend their support across multiple platforms, such as Facebook Messenger and Amazon Alexa devices, enabling convenient interactions with the brand.

    Moreover, TD Ameritrade presents two mobile trading applications, namely TD Ameritrade Mobile and thinkorswim Mobile. These apps offer trading accessibility and a plethora of features, unrestricted by geographical constraints.

    Fidelity Investments: A Beginner-Friendly Broker with Unmatched Services

    Fidelity Investments stands out as an immensely investor-friendly brokerage, making it an exceptional option for novices to buy stocks under $5.

    The company offers an extensive array of services and excels in delivering exceptional client support, particularly through telephonic assistance, where elaborate inquiries can be addressed in mere moments.

    The research reservoirs accessible at Fidelity are vast, encompassing a diverse selection of reports to aid investors. Whether you’re seeking the fundamentals of intelligent investing or profound expertise in specific domains, Fidelity has you covered.

    They offer webinars and recorded sessions that encompass nearly every facet of investment, ensuring the swift acquisition of the requisite wisdom.

    Navigating Fidelity’s website is an effortless task, as it is meticulously designed to be user-friendly, enabling you to effortlessly discover sought-after information without any inconvenience.

    Interactive Brokers: Low Costs and Extensive Resources For Investors

    Interactive Brokers comprehends the significance of maintaining economical expenses for both novices and proficient investors.

    The organization excels in this domain, commencing commissions at $0 via its Lite pricing strategy and offering more than 19,000 mutual funds devoid of transaction fees.

    Moreover, Interactive Brokers refrains from imposing any transfer-out fees, a common practice observed among other brokerage firms.

    Alongside their cost-effective approach, Interactive Brokers delivers robust research options and educational materials.

    These resources encompass instructional articles, webinars, and a comprehensive training program designed to enhance investors’ understanding.

    They provide round-the-clock assistance through telephone and chat systems, ensuring the timely resolution of queries.

    Ally Invest: A Fresh Approach to Brokerage With Unique Features

    Ally Invest emerges as a fresh contender within the brokerage domain, presenting a robust choice for individuals already engaged with Ally Bank and in pursuit of a convenient avenue for venturing into the realm of investments.

    Ally Invest furnishes a mobile application that grants users access to their accounts, facilitates quotation retrieval, and enables trade execution.

    The organization is widely acclaimed for its exceptional customer support and forward-thinking digital banking functionalities.

    The process of swiftly and seamlessly transferring funds from one’s bank account to the investment account is a notable convenience.

    Furthermore, Ally Invest delivers an information hub housing captivating content, distinguished by its enjoyable prose, in stark contrast to conventional financial resources.

    Robinhood: Empowering Novice Investors with Cost-Effective Options

    Robinhood appeals to newcomers who prioritize affordability, making it one of the best options to buy stocks under $5. The platform facilitates trading without charging commissions for stocks, ETFs, options, and cryptocurrencies.

    Moreover, Robinhood permits users to buy fractional shares, eliminating the necessity for substantial capital to initiate investments.

    Robinhood

    With its intuitive mobile application, Robinhood streamlines trading while enabling convenient monitoring of portfolios.

    Furthermore, the company has enhanced its customer support services, providing round-the-clock assistance via chat and phone to ensure the timely resolution of queries, irrespective of the hour.

    Where To Buy Penny Stocks Under $5

    Penny stocks under $5 present an enticing opportunity to enter the stock market and potentially reap substantial returns. While penny stocks can be volatile and risky, they can also be rewarding if approached wisely.

    Finding the right marketplace to purchase penny stocks is essential. Here are a few popular options:

    • Major Stock Exchanges

      Some penny stocks are listed on established exchanges like the New York Stock Exchange (NYSE) and NASDAQ, providing increased transparency and credibility.

    • Over-the-Counter (OTC) Markets

      OTC markets, such as OTCQB and Pink Sheets, facilitate the trading of penny stocks not listed on major exchanges. However, caution is necessary due to lower regulatory standards.

      This opens up a realm of possibilities, with numerous penny stocks available at low prices.

    • Direct Stock Purchase Plans (DSPPs)

      Direct Stock Purchase Plans (DSPPs) is an excellent option for investors who prefer a hands-on approach and direct ownership of penny stocks.

      DSPPs enable investors to purchase stocks directly from the issuing company, bypassing the need for a broker. Many companies offer these plans, allowing individuals to invest small amounts of money and accumulate shares over time.

      While DSPPs may have specific restrictions, they provide a unique opportunity to invest directly in promising penny stocks without the need for an intermediary.

    Features To Look For In Stocks Under $5

    When evaluating the best stocks to buy under $5, consider the following features to make informed investment decisions:

    • Strong Fundamentals

      Look for companies with solid financials, including healthy revenue growth, strong balance sheets, and positive cash flow. Assess factors like earnings per share (EPS), profit margins, and debt levels to determine financial stability.

    • Growth Potential

      Identify stocks with promising growth prospects. Analyze industry trends, market demand, and the company’s competitive advantage. Look for companies positioned to capitalize on emerging technologies or expanding markets.

    • Positive Catalysts

      Consider stocks with upcoming positive catalysts such as new product launches, strategic partnerships, or regulatory approvals. These events can potentially drive stock prices upward.

    • Management Competence

      Evaluate the company’s management team and its track record. Look for experienced leaders who have successfully navigated challenges and delivered on their promises.

    • Liquidity And Volume

      Ensure that the stock has sufficient trading volume to facilitate buying and selling without significant price impact. Adequate liquidity is crucial, as it allows investors to enter and exit positions efficiently.

    • Risk Assessment

      Understand the risks associated with the company and its industry. Assess factors like competition, regulatory hurdles, market volatility, and potentially disruptive technologies that could impact the stock’s performance.

    Tips For Investing In Penny Stocks Under $5

    To maximize the potential of investing in penny stocks, consider the following tips:

    • Conduct Thorough Research: Diligently research companies, their financial statements, news releases, and any potential risks before investing.
    • Diversify Your Portfolio: Spread your investments across multiple penny stocks to mitigate the risks associated with individual companies.
    • Set Realistic Expectations: Understand the inherent volatility of penny stocks and set realistic goals based on careful analysis rather than speculation.

    Risks and Considerations in Investing in Penny Stocks

    Investing in penny stocks involves certain risks and considerations that should not be overlooked:

    • Volatility And Price Manipulation: Penny stocks are highly volatile and can be susceptible to price manipulation schemes.
    • Lack Of Transparency: Due to limited regulatory requirements, penny stocks may have less available information, making it harder to make informed decisions.
    • Capital Loss: Investments in penny stocks carry the risk of losing the entire investment if the company fails or the stock’s value plummets.

    Importance of Diligence and Monitoring

    To succeed in penny stock investing, diligence, and monitoring are of utmost importance:

    • Continuous Due Diligence

      Regularly assess the performance of your penny stocks, monitor news and company updates, and adapt your investment strategy accordingly.

    • Risk Management

      Implement risk management techniques, such as setting stop-loss orders, to protect your investments from significant losses.

    • Stay Informed

      Stay updated on market trends, economic indicators, and regulatory changes that can impact the performance of penny stocks.

    Conclusion

    Investing in penny stocks under $5 can be an attractive opportunity for investors seeking potentially high returns.

    However, it is vital to approach these investments with caution, understanding both the advantages and disadvantages they present.

    By choosing reliable online brokers, conducting thorough research, and practicing diligent monitoring, investors can navigate the risks associated with penny stocks and increase their chances of making informed investment decisions.

    Frequently Asked Questions

    What To Avoid When Shorting Stocks Under $5?

    When shorting stocks under $5, it’s crucial to avoid certain pitfalls. Firstly, avoid illiquid stocks with low trading volume, as exiting positions may prove difficult.

    Secondly, be cautious of stocks with high short interest, as sudden squeezes can cause substantial losses.

    Lastly, steer clear of companies with solid potential for a turnaround, as they may defy expectations. Prudent research is key.

  • Sundial Growers Inc. (SNDL)’s Latest Earnings and Business Threats & Opportunities

    The Canadian cannabis products company, Sundial Growers Inc. (SNDL) came out with its quarterly earnings yesterday after the market close. While SNDL faced soaring hype prior to the earnings, at present the stock is falling down in the pre-market today on May 17, 2022. At the time of writing, the stock had lost 8.71% in the pre-market and was trading at $0.4245 apiece. This downfall came after the stock garnered the interest of investors yesterday and soared by over 21% in the regular session.

    Source: The Motley Fool

    Before the earnings release yesterday, SNDL saw a nice uptick as investors were looking forward to a beat report. The company had previously said in its Q4 2021 earnings call that it is starting to witness positive momentum across all of its key segments. It then announced a plan of becoming free cash flow positive within 2022 and the latest acquisition of Alcanna on March 31, was probably why investors were so cheerful before the Q1 earnings. But the current downtrend following the earnings release suggests investors were not impressed with the results and thus have now sparked a sell-off.

    However, let’s look at the earnings report and the threats and opportunities surrounding SNDL.

    SNDL’s Q1 Earnings Snapshot

    On the ending day of the March quarter, SNDL completed its Alcanna acquisition. Adding just the single-day revenue from the acquisition, the company’s Q1 revenue hit $17.6 million, marking a YOY growth of 78%. Had the acquisition been completed in January, Alcanna’s $162.5 million revenues (from January 1 to March 30, 2022) would also have been consolidated to the company’s results.

    Moreover, the quarterly gross margin improved by a huge 199% YOY to $3.4 million against a loss of $3.5 million in the year-earlier period.

    On the improving front was also the net loss which shrunk to $38.0 million against $134.4 million in the prior-year period. Thus, it marked a stark improvement of 72% YOY.

    However, owing to central bank interest rate changes and fair value adjustments in relation to the SunStream joint venture, the adjusted EBITDA was a loss of $0.7 million in Q1 2022. The comparable figure was positive $3.3 million in Q1 2021.

    SNDL ended the quarter with cash, marketable securities, and long-term investments of $1.0 billion and no outstanding debt while the unrestricted cash was $361 million on May 13.

    Possible Threats

    The legalized medical and recreational cannabis market, while expected to remain bullish between 2019 to 2026, has an attributed CAGR of just 4.6% in the period. Furthermore, it faces many challenges as the legalization of cannabis is still vastly debated in most countries, including the U.S. Another risk to the market comes from the cannabis products on the black market. Given that black market producers don’t have any legal responsibility and costs like the legalized SNDL and others, they offer their products at much lower prices, which is a huge competition as well as a threat to legal cannabis providers. The black market imposes a relentless rivalry on the legal players in the industry. Many companies, including Sundial, have been struggling to keep up with the black market products as the rising inflationary pressure is further instigating consumers to go for the lower-priced products.

    The soaring inflation rates which are expected to continue rising are surely going to further discourage consumers from purchasing legalized cannabis products.

    Market Opportunity

    On the other hand, the cannabis market saw a boom after Canada legalized the products, and legalization efforts continue in various states of the U.S. as well. Americans are overwhelmingly supporting cannabis legalization as its demand continues to rise on part of its numerous medical and psychological benefits, in addition to being a stress reliever.

    For SNDL, the latest acquisition of Alcanna also brings a vast opportunity as it has now become the largest private-sector distributor of both cannabis and liquor in Canada with 354 retail locations. In addition to cannabis, its expansion into liquor retails will also improve its cash flow and revenues.

    The company is also working on reducing its operating costs by CAD150 million-CAD170 million annually by the fiscal first half of 2023. While adjusted EBITDA profitability in the near-term still remains questionable, if it can sustain the current positive momentum, SNDL will likely trend higher.

    Conclusion

    There are as many threats as there are opportunities in the market ad in times where geopolitical and economic stability is deteriorating by the day. Even cannabis legalization might not bring any good news for companies like SNDL. The real threat continues from the black market as inflationary pressure will continue enticing consumers to obtain the products at relatively small costs. However, the company does have a strong cash position to help it expand and grow both organically and inorganically on top of the Alcanna acquisition to further its revenue and profits.

  • Sundial Growers Inc. (SNDL) stock Continues to Rise Ahead of its Upcoming Earnings. Why?

    On March 22, Sundial Growers Inc. (SNDL) remained bullish throughout the day with gains extending to the after-hours session. It seems investors are stocking up before the company releases its fiscal 2021 financial results. The company will declare its 2021 results on March 29, after the market close. Moreover, the conference call and webcast will be hosted at 10:30 am EST on March 30, 2022.

    Source: Investopedia

    In the regular trading session, the stock was able to add a good 10.01% at its closing price of $0.5848 per share. The volume of the shares exchanged during the session remained above the average at 92.71 million. SNDL continued its bullish momentum in the following after-hours session with a further gain of 9.44%. Hence, the stock was trading at a value of $0.6400 per share at an after-hours volume of 7.38 million shares.

    The Canada-based adult-use cannabis products producer, Sundial Growers Inc. was founded in 2006. Currently, its 2.06 billion outstanding shares trade at a market capitalization of $1.1 billion.

    Why is SNDL Bullish Before Earnings?

    As there is no news from the company other than its upcoming earnings, the stock seems to be gaining on external factors. It seems social media chatter over an expected-beat earnings report is causing the stock’s recent bullishness. Investors and experts alike are expecting good things from the company. Some of the reasons and expectations include a beat earnings report, Alcanna acquisition, and growth boost related to it.

    In the previous quarter, the company reported positive earnings while the cannabis market suffered immensely. SNDL’s track record along with the previous acquisition of Spiritleaf is expected to result in over 25% YOY revenue growth for Q4 2021. Moreover, the much-awaited Alcanna acquisition is also expected to close by the end of March 2022, as announced recently. Given that Alcanna is the majority shareholder of Nova Cannabis, SNDL is up for a growth spurt. Thus, with so much happening, the stock seems to have a bullish sentiment and is so far taking good advantage of it.

    Company News

    On February 08, the company announced receiving an extension of 180 calendar days from Nasdaq to regain compliance with its minimum bid price requirement.

    Being in non-compliance with Nasdaq’s minimum bid price requirement, the company was supposed to regain compliance by February 7, 2022. Unable to regain compliance, SNDL requested an extension and therefore, the company now has until August 8, 2022, to regain compliance.

  • Sundial Growers Inc. (SNDL) Stock Dipping in Premarket, Here’s What you Should Know.

    Sundial Growers Inc. (SNDL) is engaged in the production of small-batch cannabis utilizing the noveel indoor facilities. The company offers the finest customer experience and best quality cannabis products. The company operates under segments including Operations, Retail, and Investments.

    The price of SNDL stock during the regular trading on February 2, 2022, was $0.48 with a slight decline of 1.08%. At last check in the premarket on February 3, 2022, the stock further dipped by 4.41%.

    SNDL: Events and Happenings

    On January 24, 2022, SNDL updated about its allocation to BBB+ investment-grade ranking by Egan-Jones Ratings Company. On January 6, 2022, SNDL and Alcanna Inc. co-announced their agreement of progression of the cognition to be given to Alcanna’s stockholders for their common shares by the inclusion of a cash component.

    On December 8, 2021, SNDL reiterated its pledge to the plan of agreement with Alcanna. The stockholders of Alcanna will receive 10.69 SNDL’s common shares per common share of Alcanna. On December 2, 2021, SNDL’s JV Sunstream IVXX Investment Corp. reported about the submission of a draft registration statement privately to the SEC for a preliminary public offering of its common stock. The number and price of shares to be sold had not been determined. The net proceeds from the transaction will be used to invest in the debt of companies. The offering will be expected to commence in the first quarter of 2022.

    On November 11, 2021, SNDL updated about the approval of the share reacquisition program by BoDs. The program authorized to reacquire approximately C$100 million of the company’s outstanding common shares.

    SNDL: Key Financials

    On November 11, 2021, SNDL released its financial results for the third quarter ended September 30, 2021. Some of the key updates are as follows.

    Revenue

    Gross revenue in Q3 2021 was $11 million compared to $15.5 million in the same period of 2020. The company missed the estimated revenue by $1.39 million.

    Earnings

    Net earnings for Q3 2021 were $11.3 million compared to a net loss of $71.4 million in the same period of 2020. The company’s actual EPS was in-line with the estimated EPS.

    Conclusion

    SNDL had lost up to 40% over the past six months period due to down-falling economic conditions during a pandemic. The company’s stock also dipped in the recent aftermarket session due to uncertain factors as the company showed no recent activity. As the company is approaching its next earnings release date, the financial experts believe good turn out by the company.

  • Why are Sundial Growers Inc (SNDL) stocks trading at such a low level today?

    As of Premarket trading, Sundial Growers Inc (SNDL) was trading at $0.66, up $0.01 or 1.16 percent from its previous closing price of $0.65. So far today, the stock has traded between $0.65 and $0.67.

    Sundial Inc. announced Financial and Operational Results for the Third Quarter of 2021

     

    In the third quarter of 2021, net earnings were $11.3 million, compared to a loss of $71.4 million the previous year. In the third quarter of 2021, adjusted EBITDA was $10.5 million, compared to a loss of $4.4 million in the third quarter of 2020. For the third quarter of 2021, net revenue from Cannabis divisions was $14.4 million, up 57 percent from the second quarter of 2021 and up 12 percent from the third quarter of 2020.

    Cannabis divisions had a $1.8 million gross margin, including a $1.9 million loss from cannabis cultivation and production, compared to a $19.5 million loss in the third quarter of 2020. The third quarter of 2021 saw $3.3 million in investment and fee revenue, $6.0 million in realized gains on marketable securities, and $9.9 million in Sundial’s share of profit from equity accounted investees, compared to Nil in the third quarter of the previous year, which preceded the start of these activities.

    At September 30, 2021, the company had $1.1 billion in cash, marketable securities, and long-term investments, compared to $1.2 billion on November 9, 2021, with $571 million in unrestricted cash and no outstanding debt. Inner Spirit was acquired on July 20, 2021, and Alcanna Inc. (“Alcanna’), Canada’s largest private liquor retailer with 171 stores, was acquired on October 7, 2021, following the end of the third quarter.

    Sundial Growers Benefit from Liquor Business Acquisition 

    Sundial put 22 million Canadian dollars into Indiva, a cannabis food company (NDVAF). Half of the 22 million CAD was invested as equity, while the other half was a term loan that Indiva would repay with interest. Sundial also revised the transaction this month, giving Indiva an additional 8.5 million CAD.

    The interest rate on the loan was increased from 9% to 15% under the revised agreement.That adds a lot of value to Sundial’s offer. Furthermore, “100% of accrued interest is payable in cash and accrued on a monthly basis,” according to the agreement.

    With all of this, Sundial is on track to produce monthly interest revenue of approximately 246,899 CAD, or $197,519 in US dollars. Of course, Indiva’s ability to repay the loan with interest is a factor, so Sundial investors should keep an eye on the situation.

    Stock and Future Margins for SNDL

    Over 170 cannabis businesses and 171 booze stores will be owned outright or controlled by Sundial across Canada. That places it firmly in the upper echelon of Canadian retail, let alone cannabis or alcohol.

    One of the benefits of the purchase, according to Sundial’s management, will be a $15 million increase in EBITDA (earnings before interest and taxes) due to synergies discovered between the two companies. In the cannabis market, every dollar of earnings counts, so $15 million is significant.

  • Sundial Growers Inc. (NASDAQ: SNDL) stock plunged in the premarket trading session; here’s why

    Sundial Growers Inc. (NASDAQ: SNDL) stock plunged in the premarket trading session; here’s why

    We are seeing a plunge in the Sundial Growers Inc. (SNDL stock) shares by a percentage of -7.12%, trading at $0.8898 per share in pre-market at the last check. Previously, the trading session of SNDL stock closed on Thursday at $0.96 gaining 7.64%. In the past 50 days, the average daily volume of the stock traded at 210.62 million while the SNDL stock volume today remained 164.87 million shares, positing a lower volume of trade. In the past year up-to-date SNDL stock jumped up 24.42% and in the past week, it boosted by 0.84% in. In the past three and six months, the stock has shed -4.20% and added 77.57%. Further, the company is currently valued in the market at $1.95 billion and outstanding shares of the Sundial stood at 1.86 billion.

    All you need to know about Sundial Growers Inc.

    Sundial Growers Inc. is a drug manufacturing company that specifically specializes in cannabis products. The company produces as well as markets these cannabis products specifically for the use of adults. SNDL stock has established the market for its operations in Canada. The diverse set of cannabis and cannabis-related products include inhalable products that are categorized into KPIs such as flower, pre-rolls, and vapes. These product offerings are sold under the various brands of the company including Sundial Cannabis, Palmetto as well as Grasslands brands. The company has its origin in the year 2006 and has based its headquarters in Calgary of Canada.

    Sundial Growers Inc. is expanding its investment in the Cannabis industry through SunStream Bancorp.

    The cannabis producing company, SNDL stock has 448,000 square feet of state-of-the-art available space for its cannabis cultivation and cannabis production. However, this is not the only operating segment of the company as it also focuses on investments. This investment portfolio is strategized on deploying capital through direct and indirect investments as well as partnerships. The company is actively partnering up in the global cannabis industry to increase its overall profitability and market cap.

    For this particular reason, Sundial Growers Inc. has partnered up with SAF Group for a strategic joint venture in the global cannabis industry. This partnership benefits both companies as it leverages financial and operational partnerships strategically for the targeting of a diversely set of enhanced risk-return opportunities. These opportunities are purely related to the cannabis industry and aims to provide increased exposure to a portfolio of attractive debt, equity, and hybrid investments that increase the long-term success of such investments.

    Initially, Sundial Growers Inc. had announced that it was focusing on a commitment of C$188 million to SunStream Bancorp Inc. SunStream is the name of the previously mentioned Joint-Venture with SAF group. There is substantial growth in the cannabis industry as regulatory approvals ease down and licensing expansion cause a growth in the Cannabis market. SNDL stock is definitely banking on this future optimistic growth and has now planned to invest an increased commitment by C$350 million to C$538 million in total for SunStream Bancorp Inc.

  • Why shares of Sundial Growers Inc. (SNDL) are rising in premarket trading?

    Sundial Growers Inc. (SNDL), a cannabis company that engages in the production and distribution of flowers, pre-rolls, and vapes, announced on Friday that it has increased its financial commitment to SunStream to $188M, which was previously announced to be $100M. SNDL stock increased substantially adjacent to the news, with SNDL share price still rising to date.

    At last check in premarket trading, shares of Sundial Growers Inc. (SNDL) were up 2.22% at $0.89. The stock of SNDL gained 4.36% to complete the last trading session at $0.87. The price range of the company’s shares was between $0.8461 and $0.90.In the past 12 months, the company’s stock has advanced 74.26%

    About Sundial growers.

    The company announced in march to initiate a joint venture with the SAF Opportunities LP through a newly established corporation, SunStream Bancorp. The joint venture has been established with a 50% stake for each company and was created with an objective to stimulate investment opportunities in the cannabis space, by offering exposure to debt, equity, and hybrid investments.

    SunStream was initially given the task to create a special opportunities fund, with assistance from various other partnerships as well as the financial commitment from SNDL. An update regarding capital commitment to several third parties is expected within a couple of months. It is also expected that the joint venture should will pursue other opportunities such as a Canadian SPAC, which could be extremely significant in a capital generation.

    The complementary nature of the businesses will allow Sundial to remain focused on their core operations while leveraging a strategic financial and operational partnership with SAF, which specializes in private equity and credit investment expertise on an international scale. Zach George, chief executive officer for Sundial, stated at the time. “We look forward to working together to generate attractive returns for our stakeholders through broader capital deployment opportunities in the global cannabis market.”

    Sundial’s brand portfolio which is inclusive of Top Leaf, Sundial Cannabis, Palmetto, and Grasslands focuses on consumer-oriented products and is trying immensely to further diversify its product line generate attractive returns for our stakeholders through broader capital deployment.

    Conclusion

    Sundial growers offered a better-than-expected outlook for the current quarter and anticipate sales and profits to grow for the full year after a joint venture with SAF opportunities. Furthermore, a larger distribution network and an increase in the cannabis retail market combined with a diversified product line has peaked investor interest in the company stock.

  • Sundial Growers Inc. (SNDL) stock rises in the pre-market trading session. Why is it so?

    Sundial Growers Inc. (SNDL) stock rises in the pre-market trading session. Why is it so?

    Sundial Growers Inc. (SNDL) stock declined by 0.88% at the last trading close whereas the SNDL stock surges by 3.54% in the pre-market trading session.  There is no recent news hitting the media related to this up and down in SNDL stock price. Sundial is a publicly-traded company, with its Common Shares trading under the symbol “SNDL” on NASDAQ. Sundial is a licensed cannabis producer with state-of-the-art indoor facilities.

    What is happening?

    If there is one thing which can be considered positive about Sundial, it is that it is flush with cash. SNDL stock had $719 million Canadian ($570 million US) in cash on hand as of March 15. With this, Sundial is able to implement whatever growth plan, management has in mind.

    On the other hand, shareholders have been completely ignored by the management of SNDL stock. While share-based dilution has become the standard in Canadian marijuana stocks over the last four years, Sundial’s dilution has been extreme. The company issued 1.15 billion shares in five months, more than tripling the number of outstanding shares. That’s not a small amount, particularly considering the company has filed a proposal to sell up to $800 million in additional common stock through at-the-market offerings.

    Sundial’s massive outstanding share count (1.66 billion) would make it nearly impossible for SNDL to produce significant earnings per share, or even to remain above the $1 minimum listing level on the NASDAQ market, despite raising a ton of money and erasing its debt.

    Conclusion

    With no accurate reason being given for the current change in SNDL stock, the outlook on its past performance shows an uncertain future of Sundial Growers. Due to SNDL’s share-based dilution, it seems like that the investors are also not sure about making a long-term bet in SNDL shares.

  • Why Sundial Growers Inc (SNDL) stock is going up?

    Why Sundial Growers Inc (SNDL) stock is going up?

    Sundial Growers Inc (SNDL) stock price is going up continuously. In Todays’s March 18, 2021, pre-market it has gained 4.55% as of this writing. The stock went up yesterday as well by 1.99% and closed at $1.54.

    Latest news of SNDL

    On March 17, 2021, SNDL announced its financial results for the full year and the fourth quarter ended December 31, 2020. All the financial figures are given in Canadian dollars

    Q4 Financial Highlights

    • SNDL Net revenue was $13.9 million for the three months ended December 31, 2020 
    • The adjusted gross margin was $3.2 million for the reported quarter.
    • SMG&A expenses were $8.8 million in the fourth quarter of 2020.
    • Net loss from continuing operations was $64.1 million for Q4.
    • Adjusted EBITDA from continuing operations was a loss of $5.6 million 

    Full-year 2020 Highlights

    • SMG&A expenses were $37.8 million for full-year 2020.
    • For 2020 Net loss from continuing operations was $206.3
    • Adjusted EBITDA was a loss of $25.6 million for 2020
    • SNDL gross revenue was $73.3 million for the year 2020 and net revenue was $60.9 million.
    • As of December 31, 2020 SNDL, has $60.4 million unrestricted cash on hand and $719 million unrestricted cash on hand on March 15, 2021.

    New Venture with SAF

    On Monday, March 15 2021, SNDL announced a 50/50 joint venture with SAF Opportunities LP and the new venture will be called SunStream Bancorp. The joint venture will focus on making cannabis-related debt and equity investments in Canada and international markets.

    Conclusion:SNDL stock is likely to do better as the cannabis market is growing. Moreover,SNDL recent financial results beat all the estimates and their recent partnership with SAF make them an attractive option for the investors.

  • The Sundial Growers Inc. (NASDAQ: SNDL) stock is rising during pre-market. Let’s find out why?

    Sundial Growers Inc. (NASDAQ: SNDL) stock showed a gain of 14.08% during the last trading close whereas the stock showed an upsurge of 11.73% in the pre-market after the company announced its 50/50 joint venture with SAF group. SNDL is the licensed producer with which it crafts cannabis through state-of-the-art indoor facilities. Sundial Growers craft-at-scale modular growing approach, award-winning genetics, and experienced master growers make them exceptional.

    What is happening?

    In this joint venture between Sundial Growers and SAF group, the companies will work together to build SunStream Bancorp. The focus is on making debt and equity investments in Canada and international markets related to cannabis. According to the agreement between the companies, Sundial and SAF group will own half of SunStream each.

    Regarding SunStream it is believed that it will open ways to make special opportunities fund in which contributions from third-party investors will be accepted along with $100 million in initial funding from Sundial. SunStream also plans to create a Canadian special purpose acquisition company (SPAC) in the future.

    The CEO of Sundial in a press release said after the success of their internal capital investment program, this joint venture is a great initiative for the company which will bring success and will also enable us to fulfill our commitments to shareholders. Also, SunStream will help Sundial to remain focused on their core operations while utilizing the power of SAF’s equity and credit investment expertise on an international level.

    Now what?

    Sundial has managed to gather hundreds of millions of dollars in recent months through a series of share and warrant offerings. Although these stock sales have shareholders’ ownership stakes but at the same time it has given a lot of cash to cannabis producer to invest.

    Finally, the ability to generate strong terms on its shareholders capital will determine the long-term performance and efficiency of Sundial stock.