Clst Building Wealth: 2 Stocks to Start a Self-Directed RRSP
Sundial Growers NASDAQ:SNDL has been among the worst-performing cannabis stocks on the equity market. Similar to
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most other cannabis producers in Canada, Sundial is wrestling with a range of issues that include shareholder dilution, low profit margins, high inventory levels, an increase in competition, overvalued acquisitions, and cannibalization from
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illegal markets, among others.In the last few quarters, Sundial has looked to improve its bottom line by focusing on the sale of high-margin items and reducing its product portfolio. It has also financed other cannabis producers, thereby diversifying its revenue base.At the time of writing, Sundial shares are down a staggering 96% from all-time highs, valuing the company at a market cap of US$1.27 billion. Comparatively, Sundial is forecast to end 2021 with sales of $44 million, valuing it at a price-to-sales multiple of over 22, which is
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extremely steep.Generally, investors pay a premium for a particular stock if the company has been e Aywb Buy Energy Stocks Now 8212; But Wait on Commodities
As a value investor, it your job to do enou
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so you ;re able to gauge the intrinsic value of a business. It Mr. Market job to do his best to set a stock price that reflects a company intrinsic value, but he isn ;t always accurate!Heck, he can be far off from the intrinsic value range in times of panic, when the degree of market efficiency drops drastically, and that a significant reason why stocks correct, not just downwards, but to the upside as well!Any stock that trading below its intrinsic value range is a buy, even the stocks of challenged businesses with ample baggage. The key is weighing the risks associated with such out-of-favour companies when determining a company intrinsic value. That no easy task, but for t
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hose willing to put in the due diligence, there are ample rewards to be had for those seeking excess risk-adjusted returns.Consider shares of Corus Entertainment TSX:CJR.B and NFI Grou