Sundial Growers Inc extends losing streak to eight as markets pull back
- NASDAQ: SNDL fell 2.23% in Wednesday’s trading session.
- The MORE Act has a rough path through the Senate.
- An imminent threat of a reverse split could dampen Sundial’s prospects.
NASDAQ: SNDL appears to have a one-way trip back to its 50-day moving average price of $0.55 as the popular cannabis stock has now had eight straight days without a win. On Wednesday, SNDL shares fell another 2.23% and closed the trading session at $0.63. It was a second straight day of red for the broader market, with all three major indices ending the session lower. The Federal Reserve released its latest FOMC minutes which pointed to further policy tightening. The Dow Jones fell 144 basis points, the S&P 500 fell 0.97% and the NASDAQ fell 2.22% as rising yields again hit growth stocks the hardest.
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Now that the MORE Act has passed in the House of Representatives, the next step toward federal legalization lies in the Senate. President Biden has openly stated that he favors updating the criminalization of cannabis laws, but has yet to publicly endorse the MORE Act. The vote will require 60 votes out of a possible 100 to pass through the Senate and avoid a filibuster, which many experts say is difficult to accomplish.
SNDL Inventory Forecast
Something that has been lost in all of this is the steady decline in Sundial’s share price. The shares will need to trade above $1.00 for ten trading sessions before Aug. 8 or the stock will be delisted in accordance with official NASDAQ regulations. If the stock can’t rally above $1.00, especially if the MORE Act doesn’t pass the Senate, the company may have no choice but to split. reversed from his actions.