Unbelievable Price Given the RevenueWith over $9MM USD in revenue in 2017 - PLTH is a valued extremely well given the current context of the cannabis market. If we look at a peer group of some of the more recent cannabis companies to enter the public market (MMEN, GTI, IAN, MPX, CRZ, and EAT), we can see a peer group average TTM P/S multiple of roughly 90x, while PLTH hosts a P/S multiple of roughly only 13x (if we include the non-trading class A shares in their market cap). Can't help but to get excited about that.
My only concern with this company is their heavy focus on retail. PLTH is planning to construct a cannabis "superstore" in Las Vegas`, which is an interesting concept that could very well be an absolute hit in the tourism scene, however I worry that this facility may place a lot of eggs (cash) in one basket in terms of CapEx that could stress the PLTH balance sheet unnecessary. That being said, the "superstore" concept - while being a slightly risky endeavor - could very well play out to be a serious cash flow generating machine and a concept that could be expanded to other major metropolitan cities in the U.S.
Excited to see the potential for this company moving forward. I feel that these guys could be a solid acquisition target for some of the bigger players using the 'retail roll-up' strategy if they continue to produce revenue numbers the way they have so far.