Is Planet 13’s (PLTH) Expansion a Smoking Buy Signal?
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Planet 13 Holdings Inc (OTCMKTS:PLNHF, CNSX:PLTH) has dominated the Nevada market with its marijuana tourism destination SuperStore. The world’s largest dispensary dominates cannabis sales on the Las Vegas Strip. Planet 13 took its first step in becoming a multi-state operator (MSO), opening another SuperStore location in Orange County, California. That store is California’s largest dispensary complex. The company now has further plans to enter a couple more US markets in Florida and Illinois. With the sales in Planet 13’s Cali store ramping up, is the stock worth buying before the company takes on the rest of the United States?
The company’s financials are a good place to start. Planet 13 generated record revenue in July with sales of $11.9 million. $800 thousand of that from its new Orange County store (in just its first month). The company’s gross margins during that month were also in excess of 50%. Planet 13’s big margin products are its expanding in-house brands that they will continue to manufacture and sell in its great stores.
Planet 13 is also focused on expanding its flagship Las Vegas store:
“We’ve got another 7,000-8,000 sq ft. of production expansion and additional couple of storefronts we are going to build out. So, we are really excited about what it will do