Superstore Continues Breaking Records
Planet 13 cultivates, produces, and sells both medicinal and recreational marijuana products. However, customers know it best for its Las Vegas retail store. In August, Planet 13 saw a record 115,246 people visit its store. Of those, an average of 2,027 per day spent money at its Cannabis Entertainment Complex, otherwise known as the “Superstore.”
Each of these customers spent an average of $90.25. This fell slightly from the $90.41 paid per customer in July. However, revenues still came out ahead as 62,833 spent money at the store, up from last month when 60,044 spent money in the store. That did not beat the 76% conversion rate the store saw in November. However, 55% of visitors spent money in the store in August, up from 54% in July.
Planet 13 Steady Amid Industry Declines
So far, this record has done little to bolster PLNHF stock. However, it has remained steady, trading between $1.80 per share and $2.20 per share since May. This has become an impressive feat as cannabis heavyweights such as Canopy Growth (TSE: WEED.TO, NYSE: CGC) in Canada and Curaleaf Holdings (CSE: CURA.CN, OTC: CURLF) in the U.S. continue to decline.
Moreover, this $267 million company trades at a reasonable valuation. The forward price-to-earnings (P/E) stands at just 18. It also trades at six times sales, a much smaller metric than some of the larger players in the marijuana space.
Furthermore, during its last earnings report, it reported revenues of $16.5 million, a year-over-year increase of about 275%. This should leave the company on target to meet revenue estimates of $71.82 million this year and $103.19 million in fiscal 2020.
PLNHF stock still struggles in some areas. For the last four quarters, analysts expected the company to break even in each quarter. However, it has fallen short each time, losing one cent per share in the previous quarter despite beating revenue estimates. Still, for fiscal 2019, analysts expect the company to earn two cents per share. They also predict that that will rise to 11 cents per share in fiscal 2020.
The Bottom Line PLNHF Stock
Investors often remain suspicious of marijuana stocks on the OTC market trading below $5 per share. However, traders should consider taking PLNHF stock more seriously. Its Las Vegas Superstore continues attracting record numbers of visitors.
Moreover, PLNHF stock is on the verge of turning a profit while maintaining a reasonable valuation. As a result, it has not seen the decline that has taken down the stocks of much larger players.
Many investors understandably want to stay away from equities such as PLNHF stock. However, with its sustainable growth and profits at a reasonable valuation, I see it as an excellent opportunity for investors to make money before it becomes more widely discovered.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.