Planet 13 Holdings Inc (OTCMKTS: PLNHF) To Climb Higher

Planet 13 Holdings Inc (OTCMKTS: PLNHF) impressive start to the year triggered a 60%-plus rally to record highs. While the stock has pulled lower, the pullback appears to be a minor correction attributed to shareholders taking profits.

Planet 13 Holdings Price Analysis

The stock is likely to resume its uptrend once the correction phase comes to a halt. Underlying fundamentals turning bullish is one of the reasons why the stock looks set to continue climbing the ladder after bouncing off a crucial support level.One of the reasons to remain bullish about Planet 13 Holdings prospects has to do with the fact that the Company continues to register an increase in the number of people visiting its Superstore. The Company is also fresh from reporting impressive financial results for FY2018 that underscore the underlying growth trajectory.Robust revenue growth is one of the catalysts likely to cause the stock to climb higher after a period of consolidation. The stock has already started edging higher after bouncing off the $1.80 support level. PLNHF Daily ChartAbove the $1.80 support level, Planet 13 Holdings looks set to make a run for 52-week highs of $2.70 in continuation of the long-term uptrend. However, failure to stabilize above the support level could result in the stock plunging further on the violation of the $1.80 support level.A breach of the $1.80 support level could result in the acceleration of the sell-off wave that could result in the stock plunging back to the $1.30 support level.

About Planet 13 Holdings

Planet 13 Holdings is a company that cultivates, produces, and distributes medical and recreational cannabis in the United States. The Company also operates dispensaries that dispense recreational cannabis as well as cannabis extracts and infused products.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=2s[/embed]

Why is Planet 13 Holdings a Bounce Back Play?

Planet 13 Holdings is a potential bounce-back play after experiencing a minor correction. The stock’s market sentiments have received a significant boost on the delivery of impressive financial results for the full year ended December 31, 2018.Revenue for the full year increased 136% to $21.2 million as gross margin expanded 134% to $10.9 million. However, a 298% increase in expenses that came in at $11.3 million plunged the Company to a net loss of $10.7 million. Cash and cash equivalent as of the end of the fiscal year totaled $19.4 million up from $0.5 million as of the end of 2017.

Superstore Gains Traction

Robust revenue growth can be attributed to the opening of the Cannabis Entertainment Complex (the superstore), which has continued to post impressive sales month over month. Planet 13 Holdings is currently working on Phase II expansion of the store that could trigger an increase in traffic ideal for growing sales.

“In the six months since we opened the doors at the Superstore, our team has driven solid revenue performance by executing targeted initiatives to grow traffic and average ticket at the site steadily. The Superstore is building a reputation as a must-visit destination in Las Vegas for anyone who is interested in cannabis,” said Larry Scheffler, Co-CEO of Planet 13.

Planet 13 Holdings has continued from where it left in 2018 as revenue growth has turned out to be the order for the day helped by traffic increase into the Superstore.The Superstore is currently serving more than 2,000 customers a day, at $75 average ticket, even though it is only 35% of the total square footage build out. April 20 was the single biggest shopping day since the superstore went online. Planet 13 Holdings was able to serve over 6,000 customers with almost 3,500 paying customer at an average ticket of $91.1.

“We expect the Superstore's visibility to continue to grow as we complete our Phase II expansion in Q3 and are exploring several additional ways to generate value both through expansion into other jurisdictions as well as distribution of our successful in-house brand portfolio,” added Mr. Scheffler.

What Next For Planet 13 Holdings

Planet 13 Holdings is on its way up, after experiencing a minor correction from 52-week highs. A build up in the upward momentum amidst strengthening investor sentiments is one of the reasons why the stock looks set to climb higher. Robust revenue growth is another development that should continue to spur investor sentiments. Overall, PLNHF remains a top cannabis play.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.