The opening of the world’s largest cannabis store in Las Vegas is the catalyst that continues to strengthen Planet 13 Holdings Inc (OTCMKTS:PLNHF) sentiments among investors. The stock has taken flight ever since the company announced the opening of the 112,000 square foot facility.
Planet 13 Holdings Price Analysis
The proximity of the store to the Las Vegas Strip as well as the promise of quality and diverse cannabis products are some of the developments that continue to reaffirm the company’s long-term prospects. The opening of the store in Las Vegas means Planet 13 Holdings is well positioned to address cannabis needs of millions of tourist visiting the city annually.
Sensing a window of opportunity when it comes to sales, investors have continued to push the stock up the charts, depicted by recent price action activity. A surge in trading volume at the back of high turnover in traded shares attests to renewed investor interest in the stock.
The stock has continued to trade in a steep uptrend since September, with pullbacks acting as buy opportunity from where new buyers have come in and continued to push the stock up the chart. After spiking to the $2.57 level, the stock now faces immediate support at the $2.20 level which was the previous resistance level.
A breach of the critical support level should open the door for short sellers to push the stock back to the $1.80 level which was the previous support level. Above the $1.80 level, Planet 13 Holdings remains bullish and buyers in full control.
What Does Planet 3 Holdings Do?
Planet 13 Holdings bills itself as a cannabis company focused on the cultivation, processing, and distribution of cannabis for medical purposes. The company is a licensed producer in Nevada where it also operates dispensaries that provide recreational cannabis as well as infused products and extracts. The company also sells its products online.
Opening of Cannabis Superstore
Planet 13 Holdings remains the talk of the cannabis space on opening the world’s largest cannabis retail outlet. The cannabis store will operate as the world’s largest cannabis dispensary focused on offering a unique and awe-inspiring experience.
The store is located at 2548W just steps away from the famed Las Vegas Strip. Its location means it is the only one of two stores focusing on the robust Las Vegas tourist market.
Phase 1 consists of an entertainment complex about 40,000 square feet supplemented by a 16,000 square feet cannabis retail space with 42 registers.
“We have seen incredible demand from cannabis companies across Nevada wanting to showcase their product in the largest dispensary in the world. I don’t think there is another dispensary with the breadth and quality of the product we have here, nor a site with the potential for multi-year expansion this close to the Strip,” said Bob Groesbeck, Co-CEO, of Planet 13.
The opening of the superstore could not have come at a better time given that Planet 13 Holdings is in a phase of robust revenue growth. The Company has recorded eight consecutive quarters of revenue growth. Revenue for the first six months of the year totaled $8 Million. The company is currently ranked 10th on the list of top U.S revenue generating cannabis companies. The superstore should thus go a long way in strengthening the company’s revenue streams given the number of customers the company will be serviced on a daily basis.
In a bid to keep up with growing demand for cannabis products especially with the opening of the superstore, Planet 13 Holdings has embarked on the signing of supply agreements. The company has so far signed agreements for a combined product value of $20 million as it continues to stockpile its inventory levels. It has also entered into supply agreements with seven premium cannabis brands.
Planet 13 Holdings skyrocketing up the charts does not come as a surprise or on speculation but on investors taking note of the underlying fundamentals. The company has already shown it has the ability to generate revenue amidst stiff competition in the multi-billion sector. That said, the company remains well positioned to generate significant shareholders value as revenues continue to increase at an impressive rate.
The stock should continue powering up the charts especially after a recent break out from tight trading range. For early birds, this is a stock worth paying attention to, as it is destined to continue powering high especially on pullbacks.
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Disclosure: We have no position in PLNHF and have not been compensated for this article.