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Summary
- Sundial Growers and Supreme Cannabis were among the most active stocks on February 9 with a one-day volume of over one billion and 53.9 million, respectively.
- Supreme’s stock has swelled almost 187 per cent this year, with an excellent price-to-cashflow ratio of 263.
- Stocks of Sundial Grower have returned over 251 per cent in 2021, with a market cap of US$ 2.5 billion.
The cannabis industry’s unstoppable rally has been accelerating to the next level as marijuana producers focus on cannabis 2.0 products. Meanwhile, the S&P/TSX Cannabis Index jumped almost 13.5 per cent yesterday. The benchmark index is up 119 per cent this year.
North American pot stocks are making the most out of this buzz. Here are two stocks that are still trading under $2 and may grow further: Sundial Growers (SNDL:US or NASDAQ: SNDL) and Supreme Cannabis (TSX:FIRE)
Here’s a bit more on the stock fundamentals:
Sundial Growers Inc (SNDL:US or NASDAQ: SNDL)
On February 9, the Calgary-based cannabis cultivator CEO, Zach George, said that they focus on offering higher Tetrahydrocannabinol (THC) potency to meet new customer demands.
The stock popped up nearly 30 per cent to a 52-week high of US$ 1.75, with an one-day trading volume of 1.165 billion on Tuesday, February 9.
The pot stock has gained 251 per cent this year, with an average volume of over 1 billion for the last 10 days.
The adult-use cannabis retailer’s shares are up more than 1078 per cent compared to its 52-week low of US$ 0.14.
However, its stock is still at US$ 1.65 against its all-time high of US$ 13.22 (on Aug 11, 2019).
Hence, the stock could deliver favorable growth amid the ongoing heavy trade.
The company cleared its due of C$ 21.9 million in December 2020 and entered as a debt-free entity in 2021. Sundial Growers’ current market cap is US$ 2.5 billion. As of December 21, 2020, the firm recorded available cash of C$ 62 million.
Image Source: Kalkine Group @2021
Supreme Cannabis Company Inc. (TSX:FIRE)
Supreme stocks are on fire with nearly 53.9 million shares changed hands on Tuesday, February 9. The scrips reported a jump of around 41 per cent. Its current price stands at C$ 0.43 per share.
The stock has grown approximately 187 per cent this year, with a price-to-cashflow ratio of 263. In the past one year, it has delivered only 5 per cent. The pot stock has the potential to flourish as it is still 711 per cent below its all-time high of C$ 3.49 (on January 7).
The cannabis producer reported total available cash of C$ 20.4 million and a working capital reserve of C$ 48.1 million as of September 30, 2020. Supreme is likely to release its Q2 FY2021 results tomorrow.
