Is Planet 13 Holdings (OTCMKTS:PLNHF) Stock a Good Buy After The Recent Move?

Las Vegas-based luxury cannabis store owner Planet 13 Holdings (OTCMKTS:PLNHF) could be one of the major beneficiaries of the upcoming travel boom that is expected to be unleashed following the easing of coronavirus pandemic restrictions.

If there is a travel boom then Las Vegas is almost certainly going to be on one of the major destinations and that brings Planet 13 Holdings into the picture for investors. In recent times, the stock has been trading within a range but things could change fairly quickly in the coming months. While it is true that the company has failed to turn a profit, it is important to point out that its luxury cannabis store had been performing impressively before the pandemic hit.

The store, which is located near the popular Las Vegas Strip, served in excess of 1 million customers back in 2019 and accounted for as much as 9% of the total cannabis sales in the state of Nevada. Although tourism footfall almost completely went away in 2020, Planet 13 Holdings managed to generate revenues of as much as $70.49 million. Hence, it is fair to say that once tourism to Las Vegas returns to its pre-pandemic levels, Planet 13 might see a boom in its business.

Market Reaction:

On Friday, PLNHF stock gained 2.90% at $6.75 with more than 301k shares, compared to its average volume of 404k shares. The stock had moved within a range of $6.49 – 6.80 after opening the trade at $6.55. Over the past 52-week, the stock has been trading within a range of $1.58 – 8.67.