RE:Best GuessPoffo99 wrote:
Anyone wanna hazard a guess on sales from the new Santa Ana Store opening in the spring? Currently Vegas has $5.5-$6 Million monthly for approx $70 Million per year. My estimate for Santa Ana is $2.5 monthly for $30 Million annualy taking Planet 13 to over $100 Million in sales (with high margins) 8-10 new stores in the next few years at $30 Million a pop would be $400 Million in Revenue making Planet 13 stock an easy $15 a share. A steal of a deal under $2. Gonna load up with another 5000 shares on Monday. Cheers
Poffo
You are making same mistake as mostly everyone: overlooking the wholesale biz potential.
The Company has allocated $4,000,000 of the net proceeds from the Offering to the expansion of its production capabilities and began the construction of a 14,000 sq. ft. production facility (the “Production Facility”), co-located within the Planet 13 Superstore. The Production Facility will enable the Company to meet the rapidly growing demand for its TRENDI concentrate and vape lines, which it launched in November. It will also be used to address the overwhelming demand for Company’s Medizin line and to launch additional brands and product lines. The Production Facility will offer an immersive experience to customers, featuring 115 feet of windows where visitors can watch and learn what goes into the creation of individual products. Interactive kiosks will be available near the production viewing area to teach customers what goes into making their favourite product, offering the Company a powerful branding opportunity. The highly automated Production Facility will utilize robotics to lower costs and will be capable of processing 600 lbs of plant biomass per day once in full production, a throughput increase of approximately 1,300% from the Company’s current production facility. The expansion will allow the Company to create new brands and product lines and expand the existing Leaf & Vine, TRENDI and its premium Medizin branded product lines (which includes disposable and re-usable, vape pens, oils, concentrates and other paraphernalia) and the recently launched HaHa Gummies and Dreamland Chocolate brands, both for the Planet 13 Superstore and for the wholesale market. Out of a current 70M sales their own product is just 15% so give or take 10M
They say the new factory will X14 their current product offering so capacity will now be 140M
Their aim is to get to 50% of sales in store out of own product (Medizin,Trendi,Leaf&Vine,Haha Gummies,Dreamland Chocolates,Elysium) so give or take 35M
This leaves 105M of capacity to do either third party manufacturing or wholesale their own brands through third party dispensaries.
Its pretty obvious these guys will be able to push their offerings all over Nevada leveraging their number one retailer status in Las Vegas ( if you want me to carry your stuff, take mine as well...)
So lets be conservative and add another 35M to your numbers. I do agree on 30M for CA store.
I disagree on the Las Vegas shop itself, if you listen to last week´s conference call they gave out 2019 year end guidance which pointed to current run rate at 82M/ year.
So 80 + 30 + 35 = 145 M or approaching 1 USD ( 1.30 CAD) / share of revenue at what could be a blended gross margin around 50%, all selling for CAD 1.78 right now when CPG companies sell at 4-5 times sales.
5 bucks here we come