DD Support Board and Research Team

[Monksdream]

Sundial is a Canadian reefer company. It finally got around to reporting its quarter after 44 days, one day short of limit. It loses money. It has always lost money. What the CEO is good at is selling stock. The current outstanding share count is something like 2 billion. At 80 cents a share you can do the math for the market cap for a company that isn't likely to generate even 50 million in the next 12 months. Moreover, it continues to sell stock.

Rather than go back two years I decided to paste a five year chart of weekly prices that includes the time when the company listed its shares on the NASDAQ. As one can observe from the graph, the highest prices paid were on the day the company was listed. Almost immediately the CEO started dumping shares into the float. The practice has continued unabated. The lowest price occurred last year at 13 cents. As one can observe in the graph the mania for highly speculative issues in 2020 was evident for Sundial.

The question I ask myself is why does the market for the stock still price it at 80 cents? 8 cents would be generous. But, it is what it is. Perhaps the Robinhood account holders are lending bid support.

What is also evident is the CEO of this company pretty much did what the CEOs of AMC Entertainment and Gamestop did. They sold a ton of shares to inexperienced market participants with little understanding of how ordinary fundamentals have a large role in the investment decisions of experienced people, be they ordinary individuals who took the time and trouble to study up or the professional asset managers.