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In the recent Reddit rally, Sundial Growers (NASDAQ: SNDL) stocks rose more than 65% on Thursday morning before it entered the market

Cannabis Play SNDL stocks are among the top 10 trending stocks on discussion website com

according to the Unbiastock tracking engine

Traders on r / WallStreetBets’ Reddit forum have made oversized gains on previously run down stocks for the past few days, including GameStop (NYSE: GME), Koss (NASDAQ: KOSS), and Clovis Oncology (NASDAQ: CLVS)

The chatter and the resulting trade spurts have fueled the anger and exit of hedge funds and other short sellers, who took $ 91 billion off their inventory value according to data provider S3 Partners, GameStop is a “unique situation,” Ihor said Dusaniwsky, managing director of S3

Short interest in SNDL shares was around 66 million shares with an average daily share volume of 4225 million as of Jan 15 That corresponds to one day to cover the interest

Before Redditors targeted SNDL stock, we thought things were looking pretty green for the cannabis company thanks to the wider adoption of marijuana use and expectations of further legalization or decriminalization, particularly at the federal level under President Joe Biden , it gained importance along with others in the universe of pot stocks

Sundial Growers also surprised investors last month with news that it was debt-free. Like many cannabis names, the Calgary, Alberta firm has had problems with the company saying it was out of cash two-quarters after it went public more was available But as of December 21, it had repaid debts of CAD 227 million in 2020

Debt-free, SNDL was ready to focus on strategic growth and other opportunities Little was reported since rumors in December that Sundial would soon merge with Canopy Growth (NASDAQ: CGC) The earlier announcement that Tilray (NASDAQ: TLRY) and Aphria (NASDAQ: APHA) were merging in an all-stock deal fueled the rumor mill

That brings us back to the otherwise soaring SNDL stock here on Thursday morning. What should you be doing here? We liked Sundial before the Reddit mob got the idea Once it cools down – as it will inevitably be – it could still be a good entry or addition to cannabis stocks to add to your portfolio. But here? No thanks

At the time of this writing, Robert Lakin held (neither directly nor indirectly) positions in the securities mentioned in this article

InvestorPlace employee Robert Lakin is a seasoned finance writer and editor who follows fintech, agtech, and property tech startups

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World News – CA – SNDL stock: Sundial Growers soars high on Reddit Stocks rally

Source: https://investorplace.com/2021/01/sndl-stock-cannabis-play-sundial-growers-flies-high-on-reddit-stocks-rally/