Investors who bought Sundial Growth stock in February are looking for any bit of positive news from the company's Q1 2021 earnings report in hopes of recouping their massive losses.
As of this writing, Sundial Growers Inc. (NASDAQ: SNDL) stock is trading for $0.72, a loss of 75% from the February high of $2.95.
In its earnings report, the company said that its gross margin (sales minus the cost of goods sold) was negative 3.45 million Canadian dollars - that's a warning sign that the company is unable to control costs.
To offer a solution to the shareholders, Sundial said it is cutting back on offering discounted products in certain markets and liquidating low-margin items.
On top of that, it reported net revenue of C$9.9 million, which was down 29% from the same time last year.
In such a high-growth industry like cannabis, sales should be skyrocketing. Not shrinking.
National Institute for Cannabis Investors
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National Institute for Cannabis Investors
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Shrinking sales are not going to help Sundial stock shareholders make back their money or get close to even.
Fortunately, there's a better way for cannabis investors...
Forget Sundial Stock - Buy This Cannabis Play Instead
Don Yocham, the Executive Director of the National Institute for Cannabis Investors, did a comparison between Sundial and another top cannabis stock.
This company reported revenue of $521.5 million in 2020. And thanks to a massive new acquisition, it's on track to potentially double that revenue total in 2021 and report more than $1 billion in sales...
... putting it right in the running to be the largest cannabis company in the world by sales at the end of the year.
The good news is that, unlike Sundial, Don expects the stock price for this company could climb 240% from $40 to $136 over the next 18 months. It may even reach $136 much sooner than that.
In the video below, Don lays out his Sundial stock forecast (11:52) and the stock he expects to climb from $40 a share to $136...
But don't stop there.
You can get NICI's free report on "The 3 Best Cannabis Investments to Make in 2021."