Why Planet 13 Stock Fell ~6.8% on May 7


May. 8 2019, Published 7:07 a.m. ET

The announcement

On May 7, Planet 13 Holdings (PLTH) (PLNHF) announced that its Las Vegas Cannabis Entertainment Complex, also called the Superstore, served an average 1,962 customers per day in April, while its average ticket size stood at $89.62. Compared to March 2019, the average traffic has fallen from 1,987 customers per day, while its average ticket size has increased from $88.58.

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In April, the company’s visitor conversion rate declined from 62% in March to 61%. The decline in average customers per day, the lower visitor conversion rate, and the weakness in the broader equity market appear to have led to a fall in the company’s stock price. On May 7, Planet 13’s stock price fell to a low of 2.85 Canadian dollars before closing the day at 2.88 Canadian dollars, which represents a fall of 6.8% from its previous day’s closing price. On the same day, the S&P 500 Index (SPY) fell 1.7% on renewed trade tensions between the US and China.

Year-to-date stock performance

Despite yesterday’s fall in its stock price, Planet 13 has returned 93.3% YTD as of May 7. After the successful launch of its earlier two brands, Medizin and TRENDI, Planet 13 launched its third brand, Leaf & Vine, on April 2. Earlier in March, the company signed an agreement with Tyson Ranch, owned by boxer Mike Tyson, to become its exclusive launch partner in Nevada. Along with these announcements, the growth in revenue from its Superstore appears to have contributed to a rise in the company’s stock price.

This year, Planet 13 has outperformed the Horizons Marijuana Life Sciences ETF (HMMJ), which provides exposure to the public-listed cannabis businesses in North America, and the ETFMG Alternative Harvest ETF (MJ). YTD, HMMJ has returned 43.2%, while MJ has returned 39.4%.


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