Planet 13 Stock: Pot Stock Up 62% Since June & Still Has Room to Run

Why PLNHF Stock’s Outlook Is Bullish

Marijuana stocks got a bit of a boost in the days after a bill to federally legalize marijuana was presented in the U.S. Senate on July 21. The shine didn’t last long, though, with many cannabis stocks giving up those gains since then.

Why? The odds of the Cannabis Administration and Opportunity Act—which was drafted by Senate Majority Leader Chuck Schumer and Senators Cory Booker and Ron Wyden—getting passed are remote.

On the plus side, the bill opening up dialogue in the Senate could lead to incremental reforms over the coming quarters.

There are too many “ifs” to keep cannabis stocks trending higher right now, but some marijuana stocks have been defying the pullback. For instance, shares of Planet 13 Holdings Inc (CNSX:PLTH, OTCMKTS:PLNHF) have been trending higher since before the marijuana legalization bill was introduced in the Senate.

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And Planet 13 stock continues to move higher. As of this writing, PLNHF stock is up by 62% over the last month and 20% over the last three months.

Chart courtesy of StockCharts.com

About Planet 13 Holdings Inc

What’s been going on at Planet 13 Holdings Inc?

Located just off the Las Vegas Strip, Planet 13’s main location is the largest cannabis entertainment complex in the world. In 2021, the company expanded into California, opening a new SuperStore in Santa Ana, the largest cannabis dispensary in the state.

Planet 13 Holdings Inc is moving forward with opening a SuperStore in Chicago and a new medical marijuana dispensary in Florida.

This is just the beginning. Over the next five years, Planet 13 hopes to have at least eight SuperStores in tier-one markets across the U.S. and Canada, as well as smaller neighborhood stores strategically located across the U.S.

In the first quarter of 2022, Planet 13 Holdings Inc announced the closing of its acquisition of Next Green Wave Holdings Inc. and the initiation of its Florida dispensary roadmap with a lease for its first dispensary in Jacksonville. (Source: “Planet 13 Announces Q1 2022 Financial Results,” Planet 13 Holdings Inc, May 16, 2022.)

Subsequent to the end of the first quarter, Planet 13 Holdings Inc:

  • Expanded its Nevada cultivation to fuel in-house product growth
  • Launched its “TRENDI” brand in California
  • Expanded its partnership with STIIIZY, LLC, with a new shop within a shop at its Las Vegas SuperStore
  • Entered a lease for its second Florida dispensary
  • Announced its third Florida dispensary, located in Ocala
  • Closed on the purchase of a 23-acre parcel of land in Florida with a 10,500-square-foot building for its planned cultivation and processing expansion
  • Drafted an application to add a marijuana consumption lounge at its Las Vegas SuperStore
  • Was awarded a conditional retail license for the Chicago-Naperville-Elgin region by the Illinois Department of Financial and Professional Regulation

Excellent Q1 Results

For the first quarter ended March 31, Planet 13 announced that its revenue increased by eight percent year-over-year to $25.7 million. (Source: Ibid.)

The company’s gross profit in the first quarter of 2022 was $12.9 million, or 50.2%, compared to $13.0 million, or 54.7%, in the same period of last year. Its net income before taxes was $700,000 in the first quarter, compared to a net loss of $2.7 million in the same prior-year period.

Moreover, Planet 13 Holdings Inc improved its net loss in the first quarter of 2022 to $2.1 million, from a first-quarter 2021 net loss of $6.0 million.

The company ended the first quarter of 2022 with $62.1 million in cash, compared to $61.6 million as of December 31, 2021. Its total assets increased from $216.8 million as of December 31 to $274.0 million as of March 31, 2022. Its total liabilities improved from $43.1 million as of December 31 to $41.2 million as of March 31.

Bob Groesbeck, Planet 13 Holdings Inc’s co-CEO, noted, “We continue to make progress on our Florida roadmap working in dual tracks to bring cultivation and retail online. We are excited to drive growth throughout 2023 from our Florida operations.” (Source: Ibid.)

He added, “In Nevada, we’ve begun the expansion of our cultivation facility to expand supply of our incredibly popular premium flower line.”

Analyst Take

There are many good things going on a Planet 13 Holdings Inc these days.

For a company in an industry that’s barely in its infancy, it has been taking all the right steps to become a top player once it matures. Planet 13 has been reporting outstanding financial results, closing strategic acquisition deals, opening new dispensaries, and launching new products.

Despite the company’s positive business moves, Planet 13 stock’s share price has suffered, along with the broader cannabis stock market. This, however, shouldn’t dissuade investors from taking a closer look at this undervalued marijuana penny stock.