Shares of Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) are on a bull run this week. At the time of writing, PLTH stock is up 9.25% and selling for $1.89 CAD. The Nevada-based company has been struggling to meet the demand for its TRENDI range, which is exceeding supply.
It’s not necessarily a negative though; in fact, it merely highlights the popularity of Planet 13’s products. As one of Las Vegas’s marijuana meccas (the company recently topped a poll as being the number 1 rated dispensary in Las Vegas), should investors be keeping an eye on PLTH stock right now?
PLTH Stock: Planet 13 Could Break Out
The marijuana market faced a slump at the end of 2018. It affected most names in the business, and Planet 13 was no different. PLTH stock during this period dipped to lows of $1.26 CAD per share. However, once 2019 kicked off, Planet 13 began pairing its losses and managed to breach the $2 mark in late January.
The gains are impressive, but this stock is only getting started; there is far more potential left in the tank if we consider its numbers.
PLTH Stock Fundamentals
As stated, demand for Planet 13’s TRENDI range, has been through the roof. So much so, that the company reported a 260% month-over-month increase in revenue. What began as roughly 1,700 units sold in November, grew exponentially to over 5,000 units in December.
Even Planet 13 co-CEO Bob Groesbeck was surprised by TRENDI’s success:
“Sales of this new line, geared toward the tourist audience, exceeded our expectations and we have re-tooled to grow production in 2019 given demand-driven supply shortages experienced into year-end.”
Overall, the TRENDI line has helped Planet 13 to report record Q3 financial results; boasting a 63% increase in revenue and a 78% improvement in gross margins. It has, in turn, helped PLTH stock to increase in value.
The company opened the first phase of its 40,000 sq. ft. cannabis superstore near the Las Vegas strip in November. Now, it has reportedly begun phase two. In a company press release launched yesterday, it said that “it has begun construction on a coffee shop and bistro/pizzeria as part of a Phase II expansion of the SuperStore Entertainment Complex, adjacent to the famed Las Vegas Strip.”
At its current trading price, it seems PLTH stock could only be getting started. Analysts are bullish on this cannabis play for 2019 but what do you think?
Let us know your thoughts!
Featured Image: Deposit Photos © rabbit75_dep