Last Updated on by -TheGrow420-
The U.S. economy continues to recover from the COVID lockdown – and nowhere is this more apparent than in Las Vegas. Las Vegas has recently experienced a big uptick in visitors as consumers gain more confidence and emergency orders lift.
The Las Vegas economy should continue to recover in the coming weeks and months. Casinos are now operating at 100% capacity, and that should drive millions of new tourists into Sin City in the second half of the year.
The Las Vegas recovery is a big win for one of the largest cannabis companies in the U.S.
With more tourists rushing back to Las Vegas, I expect this market leader to see a big increase in sales in the second half of 2021, and I think it will be great for the stock’s share price.
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Las Vegas Cannabis Stock Ready to Cash in on Rebound
Planet 13 Holdings (CSE: PLTH, OTC: PLNHF) is one of the largest cannabis companies in the U.S., with a market value of $1.3 billion. Headquartered in Las Vegas, Nevada, Planet 13 is a Las Vegas-COVID rebound play.
Planet 13 already has a strong presence in Vegas. That includes a production facility, processing facility, and two retail dispensaries.
One of those dispensaries is 112,000 square feet, the largest cannabis store in the U.S. It is the closest dispensary to the famous Las Vegas Strip.
Image from Planet 13 website
Despite the COVID restrictions hurting the Las Vegas economy, Planet 13 has still delivered incredible sales growth. Recent first-quarter results from May included massive sales growth from last year.
- Revenues were $23.8 million as compared to $16.8 million, an increase of 41.8%
- Gross profit before biological adjustments was $12.8 million or 53.8%, as compared to $9.0 million or 53.9%
- Net income before taxes of $3.0 million as compared to a net income of $0.3 million
- Net income of $0.4 million as compared to a net loss of $1.4 million
- Adjusted EBITDA of $5.2 million as compared to Adjusted EBITDA of $2.4 million
Planet 13 is in position to keep growing. The company is investing tens of millions into expanding into more states.
For example, Planet 13 built another superstore in Santa Ana that is 55,000 square feet and set to open in early July. Here are some more details from the press release.
Planet 13’s SuperStore OC, located at 3400 West Warner Ave Santa Ana, California, is planned as a 55,000 square-foot consumer experience, with 16,500 square feet devoted to the dispensary retail area. The remaining areas in the complex, to be built as phases 2 and 3, are expected to include memorabilia sales, a restaurant and a cannabis consumption lounge, all enhanced by additional immersive experiences. With all 3 phases operating, P13 OC is expected to be California’s largest dispensary complex.
Planet 13 shares delivered big gains in 2020 as the cannabis sector recovered from the COVID sell-off.
In 2021, shares have been consolidating just below the recent 52-week high. This is a bullish signal that frequently leads to a breakout and new 52-week high.
The Big Picture on the Las Vegas Rebound and Planet 13
Las Vegas is rebounding from the COVID recession, and that sets the stage for a strong recovery in the second half of 2021.
That is good news for Planet 13 and its Las Vegas superstore. Planet 13 should cash in on higher foot traffic in the second half of 2021, and that should give shares of PLNHF a big boost on the chart.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.
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