It’s unlikely that Walt Disney will ever jump into the cannabis market, but there’s a company that could be viewed as the “Disneyland of Cannabis” — Planet 13 Holdings (OTC:PLNH.F). In this Fool Live video, Healthcare and Cannabis Bureau Chief Corinne Cardina and longtime Motley Fool contributor Keith Speights discuss what’s going on these days for Planet 13 and if it’s a good pick for investors.
Corinne Cardina: So Planet 13 is the first one that we’re going to talk about. This is not a multi-state operator per se because it really only has one dispensary that’s currently operating. But, boy, is it a dispensary! This is like the Disneyland of cannabis in Las Vegas.
It’s bigger than your average Walmart. You can actually see them manufacturing all the different cannabis derivatives. They’ve got restaurants, they’ve got entertainment, they have a museum, and it’s really become a destination.
Now what’s interesting is, of course, in the pandemic, places like this really don’t thrive and it’s only got one open right now. Planet 13 actually managed to do a pretty graceful pivot to delivering cannabis to locals, so shifting who their target market is. Do you have any thoughts on this stock, Keith?
Keith Speights: Yeah, they did. I will say I was, admittedly, a little skeptical about the management team, what the problems they would run into. They’ve done an excellent job of adapting to very challenging times and Planet 13, they got hit really hard. They operate right off of the Las Vegas Strip with their superstore there, and of course, when the pandemic hit, tourism just evaporated.
But the management team really moved quickly. They switched to a distribution model within the state of Nevada and serving the local market more than just tourists and really have managed to get through an extremely difficult time.
I think their last quarterly report, their revenue was actually even a good bit higher than it was in the prior-year period. So I think Planet 13 is really positioned well to come out of the pandemic quite strong.
Corinne Cardina: That’s amazing to see. Very inspiring.
Keith Speights: Yeah. Kudos to the management team. I’ve talked to them in the past and they know what they want to do. They execute well, but they adapt well. I think they’ve done an excellent job.
Corinne Cardina: Awesome. They are actually going to be opening another dispensary in the future in California, I think so. Hopefully, they can continue the success that they’ve seen in Vegas.
Keith Speights: That’s right, in the Santa Ana area. It would be interesting like you say, Corrine, to see, can they take that model and replicated elsewhere? If they can, keep your eyes on Planet 13. That stock could be going places if that can replicate their Las Vegas model.
Corinne Cardina: Definitely, we will see.