SNDL Stock Forecast: Sundial Growers pulls back as investors sell the new Senate bill

zippy1
2022-08-17

SNDL pulled back alongside the broader cannabis sector as investors showed disappointment in the new Democrat-led bill.On Thursday, shares of SNDL fell by 4.25% and closed the trading day at $0.33.Elsewhere, stocks rallied yet again as the NASDAQ saw its third straight day of gains and all three major indices closed higher for the day. Overall, the Dow Jones added 162 basis points, the S&P 500 rose by 0.99%, and the NASDAQ jumped higher by 1.36% during the session.

The long-awaited CAOA Act or the Cannabis Administration and Opportunity Act was revealed today and needless to say, investors were not impressed.The Democrat-led bill is already viewed as unlikely to pass the Senate vote, as Republicans and even some fellow Democrats have already spoken against it. The bill will need at least 60 votes to pass, which seems unlikely given that both sides have already taken issue with it. The good news is that the White House has been advocating for some form of federal legalization, so even if this bill fails, we could see another attempt by the Democrats down the road.

Sundial Growers is holding its special shareholders virtual meeting today after the closing bell.The main vote that will be held is for consolidation of the current share float, at a reverse split ratio of either 1 for 10 or 1 for 25. This means that as of the closing price on Thursday, the stock would trade at a new price of either $3.50 or $8.50 per share. This would allow Sundial to remain listed on the NASDAQ exchange.$Sundial Growers Inc.(SNDL)$

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