If you’re looking for a place to invest in marijuana stocks, Planet 13 Holdings, Inc. may be one of the best choices for you. This company operates a cannabis dispensary in Las Vegas. It has also recently become the world’s largest cannabis dispensary. So, is it a good investment or not?
Can You Smoke Cannabis in Planet 13?
Planet 13 Holdings, Inc is a vertically integrated multi-state cannabis company. It has production operations in Nevada and California, as well as dispensary locations in California and Nevada. The company is known for producing award-winning marijuana products. They sell cannabis, oils, vapes, edibles, topical lotions, and other products.
Planet 13 is one of the largest marijuana retailers in the world. They offer products at very affordable prices. Their business model is very different than other MSOs in the industry.
In the first quarter of 2021, they reported $23.8 million in revenue. They are currently working on their first medical dispensary in the Chicago area. As travel returns to pre-pandemic norms, the company’s flagship superstore will likely increase in size.
They also have plans for a Las Vegas superstore. That will be the first of its kind. This lounge will have an 8500-square-foot cannabis lounge with a grand staircase, a 5,000-square-foot balcony, and a four-inch-deep splash pool.
A portion of the factory floor will also be open to tours. One of the more impressive features of the company’s flagship store is its interactive display.
Located near the Las Vegas Strip, this will be an exciting new addition to the city. Visitors will be able to enjoy a variety of experiences and interact with the art, technology, and entertainment that will be showcased at the Planet 13 Entertainment Complex.
Is PLNHF a Good Investment?
Planet 13 Holdings Inc (PLNHF) is a cannabis company with operations in both Nevada and California. Its focus is on a dispensary experience that sets the standard. They also have the opportunity to take advantage of an expanding state-legal cannabis market.
While the company has a good long-term plan, it’s not necessarily the best place to buy stock. This is partly due to the fact that it has only a California license, which means it will have to find new markets to grow into.
Aside from that, the company is small. Compared to other Vegas casinos, it isn’t even a big player. However, it’s still got a lot of room to expand. In fact, the company just recently bought a vertically integrated Florida-based company.
The company’s executives have been in the industry for a while. Robert Groesbeck is a former mayor of Henderson, NV, and Larry Scheffler founded Las Vegas Color Graphics in 1978. Although they aren’t financial types, the company has a savvy CEO and CFO.
Planet 13 has been relatively stable in its operating expenses. The company’s margins fell a bit, but that was likely a result of the lower revenue. For example, they reported gross profits of $13.0 million in the second quarter.
But the stock price is not growing. In fact, it has fallen significantly over the past 21 months. There are 232 million shares outstanding.
Is it a Risky Industry to Invest in?
If you’re planning on investing in cannabis stocks, it’s important to understand what kind of risk you’re dealing with. This can help you make your decision on whether or not to invest.
There are two types of risk in the stock market. Systematic risk and unsystematic risk. While there are ways to protect yourself from these risks, there is no guarantee that you will avoid them altogether. In fact, the best way to minimize your risk is to diversify.
Planet 13 is an integrated cannabis company that engages in cultivation, marketing, and distribution. The company’s shares are listed on the Canadian Securities Exchange (CSE) and the over-the-counter market in the United States.
Since the company went public, its business has significantly increased. In the first quarter of 2021, Planet 13 reported $23.8 million in revenue. However, its revenue is well below the average of larger MSOs.
With a number of new opportunities coming in the near future, Planet 13 is worth a look. Currently, Planet 13 is building a medical dispensary in Florida and is considering a store near Chicago.
As legalization increases, more states are embracing the potential of the industry. Some of the biggest companies in the industry have gone public. For example, Curaleaf has more than 100 dispensaries in 22 states.
