Las Vegas-based retailer Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) is seeing increased gains this month. At the time of writing, Planet 13 stock is up 3.06% and selling for $1.99 USD on the OTC.
Should investors think about this cannabis play?
Planet 13 Stock
In just one year, Planet 13 Holdings’ share price has more than doubled. At current prices, shares are up over 175% from the year-ago period. Additionally, the share price is up 48% in a quarter.
The company has been surging this year on impressive footfall and sales at its Las Vegas Super Store. The facility has made the brand one of the most popular in tourist-rich Las Vegas.
For example, earlier this month, the company announced customer traffic for the month of May. Figures surpassed expectations; an average 2,095 customers were served daily, and an average ticket amounted to $90.63. With the original target to serve 2,000 customers at an average ticket of $75, Planet 13 stock reacted well to the news.
Planet 13 Co-CEO Larry Scheffler said the following:
“May SuperStore results were fantastic exceeding the 2,000 customers per day at $75 average ticket we guided to when opening the SuperStore.”
With business booming at the SuperStore, the company has utilized this success and recently rolled out a new product line called Planet M. This is a line of “custom formulated and curated full-spectrum and CBD isolate products” comprised of edibles, topicals, and CBD tinctures.
The company is keeping up with promises to expand its brand portfolio, and this was more news causing Planet 13 stock to jump further.
Not Yet Profitable
With over 100,000 visitors to the SuperStore last month, Planet 13 Holdings is on the right track to serious profits should the sales continue in this manner. However, at the current standpoint, the company, like many of its peers, isn’t yet profitable.
The revenue growth that it is capturing, however, could attract attention from bigger investors. And the strong rise in Planet 13 stock price shows optimism for the future. While Planet 13 still looks to gain profits, at least investors can be assured that sales have been big for the company, which is not something that every cannabis company can say in 2019.
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