Planet 13 Holdings Inc (OTCMKTS:PLNHF) About To Breakout

Planet 13 Holdings Inc (OTCMKTS:PLNHF) has been on a steady run higher ever since the pot stock selloff in December. Now the stock is pushing up against the $1.75 resistance level and a break above there and the next resistance level of $2, and we are looking at new highs for the stock. We've been bullish on cannabis stocks for 2019 and PLNHF is one we really like. Let's dig a little deeper to see what's so exciting about Planet 13 Holdings. PLNHF Daily ChartBackgroundFirst up, for those that aren't familiar with Planet 13, here's a little background info. Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH and OTCQB under the symbol PLNHF.TRENDIPlanet 13's TRENDI brand launched on November 12 with a focus on tourist customers. Demand for TRENDI has consistently exceeded supply, growing from ~1,700 units sold in November to over 5,000 units in December, resulting in a 260% month over month increase in revenue generated. The brand has 3 product types including disposable vapes and concentrates. The most popular product is a 0.3g Disposable Vape that caters to tourists who are only in Las Vegas for a short period and looking for a premium and discreet cannabis experience. Planet 13 Co-CEO Bob Groesbeck said:

"Our TRENDI launch has also been a resounding success, with sales of our newest in-house brand reaching approximately 5% of total sales in December from a standing start in November. 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."

Las VegasPlanet 13 recently reported record third quarter financial results showing a 63% increase in revenue and a 78% improvement in gross margins thanks to its successful execution in Nevada. Investors looking for exposure to the state may want to take a closer look at the company ahead of several important catalysts. Since legalizing recreational cannabis at the beginning of the year, Nevada—and Las Vegas in particular—has consistently been breaking sales and tax revenue records, while avoiding many of the oversupply and taxation problems facing other states.Planet 13 launched the first phase of its 40,000 sq. ft. cannabis superstore near the Las Vegas Strip at the beginning of November. With bright neon lights and a futuristic look, the company hopes to eventually create the first marijuana entertainment complex within the 120,000 sq. ft. former warehouse.In a recent press release, Co-CEO Bob Groesbeck noted that the first month saw Planet 13 serve 1,400 customers a day. The team expects to see a consistent flow of 2,000 visitors per day when the dust settles, with 90% of those being tourists that want to see the place and what it means to have a high-end cannabis experience in Las Vegas.Q3 resultsPlanet 13 reported third-quarter revenue that rose 63% to $4.9 million along with gross margins that improved 78% to $2.7 million serving approximately 776 people per day. Adjusted EBITDA swung to a profit of $275,568 compared to a loss of $1.4 million during the year-ago period. On the balance sheet, total assets rose 214% and total liabilities decreased by 56%, which resulted in an improvement in shareholder equity over the timeframe.Bottom lineCurrently trading with a market cap of $209 million, PLNHF is an exciting play in the cannabis space. With its new TRENDI brand and superstore on the Las Vegas strip as a base, we believe Planet 13 is just getting started. Considering how well the company has executed over its competitors in Las Vegas, Planet 13 is primed for growth and ready for new markets as US cannabis legalization continues. PLNHF looks to be a must-own for any cannabis investor.We will be updating our subscribers as soon as we know more. For the latest updates on PLNHF, sign up below!Disclosure: We have no position in PLNHF and have not been compensated for this article.Image courtesy of Pexels