My Bullish Thesis on Planet 13
Prediction
I believe that Planet 13 ("PLNHF") reach $40 per share by 2025. This is why:
​
Who is PLNHF?
PLNHF is a vertically integrated ("they control the supply and distribution chain") marijuana dispensary based in Nevada. Currently, PLNHF owns and operates the largest marijuana dispensary in the world (23,000 sq. ft.) and plans to expand into Santa Ana as well as other states in the future.
​
The companies' research shows that 74% of American prioritize experiences over products. The following are some of the features that make the SuperStore fun and unique:
​
1. Aerial orb show
2. LED Interactive Floor
3. Lotus Flowers
4. 3D Projection
5. Laser Graffiti
​
CEO (Bob Groesbeck and Larry Scheffler)
The Co-CEO model is rare in corporations but has certain benefits and drawbacks. Bob Groesbeck and Larry Scheffler are both politicians. Groesbeck served as the mayor of Henderson, and Scheffler served as a councilman for Henderson. The fact that these two Co-CEO's have a background in politics is a great strength of this company. Not only do they both understand the regulations surrounding the cannabis industry but it is also likely that they rub shoulders with the current regulators.
​
Business Plan
The company has stated that "if a city is affluent enough to support a major sports team, PlNHF is interested in opening a store. Within 5 years PLNHF hopes to open 8+ SuperStores across the United States. A few possible locations include, (1) san Francisco, (2) Seattle, (3) Houston, (4) Miami, (5) Chicago, (6) Atlanta, (7) Washington D.C., (8) New York and (9) Denver.
​
Las Vegas Superstore - The largest marijuana dispensary in the world (23,000 sq. ft.) but it has the ability to expand to 45,000 sq. ft. This store averages 1,625 customers per day and did 18.5 million in Q3 2020.
​
Delivery - Prior to the COVID-19 pandemic the company did not have a delivery service. During the first few months of the COVID pandemic the team set up a delivery/curbside business that did $3.4 million in revenue.
​
Medizin Dispensary - The Medizin dispensary is similar to the Superstore but much smaller (only 4,750 sq. ft.). During Q3 of 2018 this smaller store did $4.9 million in revenue.
​
Santa Ana Superstore - Will be located at 3400 W. Warner Ave., Santa Ana, CA 92704. PLNHF has announced that this location will open sometime in 2021. This will be a 33,000 sq. ft. SuperStore and the company has budgeted $6 million to design and construct the store.
​
Rickety Cricket Pizzaria - Everyone loves pizza and "the munchies" are real.
​
Purc Coffee - Think Starbucks but with CBD infused lattes.
​
The Bear Thesis
Scalability - As of yet it is still uncertain whether or not the success of the Las Vegas superstore is able to be replicated outside of Las Vegas.
​
Legality - Marijuana remains illegal at the federal level. Additionally, many states still have not legalized marijuana. However, this should not pose a large problem because legalization has been happening quickly and the Biden administration (specifically Kamala Harris) has stated that under the Biden administration that marijuana will be federally decriminalized.
​
Over the Counter Stock ("OTC") (Pink Sheet) - This isn't a large drawback. This stock isn't traded on the NYSE because marijuana is still federally illegal.
The OTC market is a little different than the NYSE and you may encounter several small commission fees when purchasing the stock. Also, the differences between the bid and the ask price may be larger because there tend to be less buyers and sellers in the OTC markets. Less buyers and sellers for your stock also means that sometimes you could be holding a stock that nobody wants (It is rare but it does happen).