RE:RE:RE:Planet 13 Announces $5.49 Million in Revenue from Las Vegas!They are burning cash like crazy. They won’t be in profit for at least 5-6 years, and that’s a long time and who knows in 5-6 years what will happen. They might not even survive. I won’t gamble , I will not buy this risky stock.
TheRock077 wrote: Whats even more impressive is that the Monthly revenue in March of over $5-million US was based on only 15 per cent of the total square footage in the superstore now on-site, adjacent to the Las Vegas Strip.
Lets say the potential upside in revenues at full utlization of the Superstore space is about 7 times March revenues in the current 16,200 store which is still expanding.
So, we have ( all numbers in CAD ) March annalized revenues of $90 m cad X 7
= about $550 million cad.
Gross margins are 50 % and should rise with the efficiencies of larger space.
But lets say 50 % which provides for operating cash flows of about $280 m per year or better than $2.25 per share.
Price to sales for Cannabis stocks are well above 15 times on average.
Even at just 2 times sales, the fair value market cap driven by sales in the Superstore alone would be about $1.1 billion cad or about $9.50 per share.
Vertically integrated, the above numbers are very conservative as to margins and eventual total revenues.
Fully cashed up, we are enroute to at least a 5 bagger from here and looking out another 18 months, a 10 bagger..