2024-02-02 06:46:58 ET
Summary
- SNDL recorded positive free cash flow for the first time in its most recent quarter.
- The company is heavy on cash and holds zero debt on its balance sheet.
- SNDL's risk and reward paradigm has solidly shifted to the reward side as it now trades close to its record-low valuation.
SNDL ( SNDL ) at its current US$350 million market cap is likely trading significantly below what it otherwise would have under more normalized capital market conditions. Cannabis tickers have fallen out of favor as base interest rates at 22-year highs have sapped investor risk appetite, and a lack of progress on the global trajectory of cannabis legalization has kept the plant as a stock market pariah and toxic to institutional investors. To be clear, cannabis has remained in the grey zone in the five years since Canada leaped into the unknown with its Cannabis Act in 2018 which legalized and strictly regulated the sale of adult-use cannabis. SNDL has dipped since I last covered it, but recent operational wins set the backdrop for a potential recovery....
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SNDL: Heavy On Cash And Primed For A Recovery