There are plenty of Canadian cannabis cultivators out there already. But if you have a compulsion to add more to your watch list, then you can take a look at Sundial Growers (NASDAQ:SNDL). It seems that Sundial Growers stock has gained in popularity and trading volume lately because of a recent big price move.
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There are other marijuana stocks on the market with larger market capitalizations and wider brand-name recognition. And, there are Canadian cannabis companies that have a greater market share than Sundial Growers.
The thing is, marijuana stock investors are in a buying frenzy now because they’ve got their hopes set on a particular pro-cannabis bill. That factor may provide a catalyst for Sundial Growers stock in the short term.
In the long run, however, we may find that the pro-cannabis bill, and Sundial Growers stock, could be destined for failure.
A Closer Look at Sundial Growers Stock
One thing I’ll admit is that Sundial Growers stock is cheap. Actually, it might be too cheap as it’s classified as a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.
Very cheap stocks are often susceptible to sharp price moves in both directions. Therefore, cautious investors might choose to avoid Sundial Growers stock because it’s highly volatile.
I’ll give you an…