In addition to being a penny stock, Canadian cannabis producer Sundial Growers (NASDAQ:SNDL) has been one of this year’s most-popular meme trades. That, of course, is a recipe for volatility. So far this month, we’ve seen SNDL stock shoot up nearly 50% in just two weeks, only to give back more than half its gains.

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The recent run-up was due in part to the release of the company’s third-quarter results last week.

It’s not without justification either, as so many of these speculative spikes have been. Recently, Sundial disclosed a favorable earnings performance in the third quarter, reporting net income of 11.3 million CAD ($9 million) and positive adjusted EBITDA of 10.5 million CAD (about $8.3 million). Given that prior poor quarterly performances have dogged SNDL stock, this was welcome news.

Another factor to point out is that Sundial has been acquisitive lately. Sundial acquired Inner Spirit Holdings in July. In October, it announced it is purchasing Canadian liquor retailer Alcanna.

Ordinarily, the buying spree might not be what you’d want to see from a company struggling to make a name for itself in a highly saturated and competitive market. However, consolidation has become the name of the game in the adult liberties sector, so to speak.

Cantor Fitzgerald analyst Pablo Zuanic mentioned that the cannabis retail market will consolidate, with two or three players accounting for the majority of sales and…

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