More states in the United States are legalizing the use of marijuana for adults and medicinal purposes. This officially makes the cannabis industry a new one, and investors are lining up stocks in this industry to pick from. And for most investors, Planet 13 Holdings Inc. (OTC: PLNHF) might be worth considering.
Source: Michael Fischer
Planet 13 has outperformed many of its peers in revenue, thanks to its game-changing superstore concept. This concept has helped the cannabis retailer effectively make cannabis a retail product as well as a tourist attraction. Planet 13 first established this concept in Nevada, Las Vegas, where it took off like a charm.
You may ask what’s so special about a cannabis superstore? Well, with its superstore Planet 13 has made the purchase of cannabis more than an monetary/product exchange, as you would experience in most other cannabis retail stores. Instead they have completely transformed the experience, where the buyer feels like they are on a different planet. What it means is that you can visit the store just to have fun and experience something new.
The strategic geographical location of the superstore (close to the Las Vegas strip) makes it a tourist hotspot right in the heart of Nevada. In addition to the superstore, it also has the Medizin dispensary and 3 cultivation and production facilities in Nevada, and one retail location in California.
When it comes to enlarging its presence, Planet 13 is not slacking off. It has acquired licenses to operate in Chicago and Florida, bringing its presence to a total of 4 states.
For potential investors, there are some risks to be wary of though. One of them is that marijuana is still a federally illegal substance. As such, it has not been absorbed by major stock exchanges like Nasdaq and NYSE. Also, states are taking their time to legalize use of cannabis, so the market has yet to stabilize. These risks notwithstanding, Planet 13 looks like a good buy.
Technical Analysis
PLNHF enjoyed a bullish run from April 2020 that peaked at February 2021. Since then, the stock has sunk like an anchor.
The stock recently bounced off the $2.5 – $2.8 support level, which merely reduces the dip to 61%. There’s no way to know if this support level is going to hold, though. If it does hold, the bulls might orchestrate a bullish run from this level. But if the bears refuse to hand over the control of the stock to the bulls, the support level could be torn apart, driving the price to the lower $0.5 – $0.9 support level.
Irrespective of what happens, Planet 13 looks like a ripe buy at the moment. Having dipped by over 61%, it is grossly undervalued, which is a good thing for value investors. And with the exciting growth potential of the stock, there looks to be no better time to buy for growth investors.
