So you want to know about SNDL. I’m not going to go into the back story of SNDL. If you’re asking about Sundial you already know what the company is about. Million dollar question is, do you invest or not. Simple answer, depends on how you’re investing. Let’s break it down.

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For the record I am not currently invested in SNDL but I was in the past. I swung it. Made some money when it broke a dollar and bounce out. That was several months ago. I haven’t jumped back in since BUT I have been keeping up with SNDL news for the most part in anticipation of another move. There hasn’t been any new recently that has motivated me to get back in but in the back of my head I do want to hop back in and I just might but only as a long swing trade.

Currently, the Canadian cannabis market is showing signs of saturation. That being said, SNDL is not looking as a market leader… yet. However the two pillar pivot is promising as it gives SNDL stable cashflow and a way to benefit from the saturation and legislative hurdles.

Sundial Growers' offerings center around adult cannabis use. They recently pivoted into what insiders call a ' two-pillar approach which is centered around the production of cannabis-related products and their investment arm Sunstream Bancorp.

Their production segment comprises inhalable products, such as pre-rolls, flowers, and vapes. Grasslands, Sundial Cannabis, Top Leaf, and Palmetto are the brands under which Sundial Growers offer their products.

Boasting a wide array of products in the cannabis space at multiple price points the company is still struggling to find consistency when it comes to profits. There is room for the company to focus its efforts on the more profitable sides of its business and the dried flower category has carried revenue for the company in the past accounting for more than 50% of revenue for the segment. The company is instead focusing on engaging its franchisees which is a positive. The company is also working on a Franchisee Advisory Council which will be tasked with flattening communications with franchisees so the company can dial into the growth dynamics the franchisees are seeing on the front line.

Sundial continues to invest heavily in streamlining the cultivation process and cost control. They also have an emphasis on vertical integration which jives well with their recent decision to Pivot into investment operations. Sundial seems focused on having positions all across the value stream end the Cannabis space which can be compelling or not depending on how you view the industry's prospects over the long term.

The challenge is the market saturation makes it difficult for the company to differentiate itself from its peers. The company hasn't really been able to find major success in this segment yet but as attrition thins out the competition in the Canadian market that may change. In the meantime, the company is focusing on increasing efficiency and improve its internal cost controls to protect its robust liquidity position which is prudent.

This is Stevie Bee for Money Talk Sundayz. If you haven’t done so already hit that like button. If you made it this far hit that subscribe and share button. I’m definitely open to you guys and hearing what you have to say so drop a comment or a dm. We’re going to do this. One love.