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Burnt by the Sun

Sundial Growers (NASDAQ: SNDL) is a cannabis strain producer based in Canada with a $255M market capitalization.  Cowen & Co. led the company’s IPO in July of 2019, raising $143M with a price of $13/share.  Cannabis stocks had a tough 2019, with many names moving lower.  Sundial shares took part in the trend, being offered in the $2-handle today.  The borrow fee fell along with the stock price, from 100% in July to 27% today.  Short Interest doubled since November 1st but the fee indicates the market can meet this demand.  With 70% Utilization and banks offering to lend to IBKR, we don’t see evidence of supply constraint.

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