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Well guys i’ve spent the better part of the past week looking at stocks in the mj space and when i talk about the mj space i’m talking about the michael jackson space okay we’re gonna use the term michael jackson for this video because i don’t want to get d monetized and i don’t know about this whole youtube thing and how the algorithm works winning we talked about
Michael jackson okay so we’re going to talk about the mj space i looked at a lot of stocks canopy being one of them aurore i looked into that one med man i looked into tilray i looked into a lot of these different stocks in the mj space and a lot of them were interesting to me a lot of them had interesting things going on a lot of them interested me but not enough
To make me say you know what i gotta go buy that stock and then i was going ahead and i was in the discord shot in my private group yesterday and somebody mentioned a stock called planet 13 in the discord chat and so we went yesterday we went over to plenty of 13 and we actually checked out this establishment i was like you know what i heard about this place in
Las vegas i’m gonna go ahead and check it out so i’m probably showing you guys a bunch of pictures right now the inside it’s not just like a dispensary or something like that like a lot of people think like what was in just another dispensary no no no okay this place is epic i mean it is absolutely an epic really cool place and it’s really more of an entertainment
Venue rather than just a dispensary where you go in and get your michael jackson and get out okay this is this is a whole deal holyfield okay that you can get pizzas there and i’m not talking pizzas with the mj and i’m just talking like regular pizzas you i got some tater tots yesterday oh my gosh those tater tots was delicious with some bacon and some cheese sauce
And you can get coffee’s there and drinks they even you can even get beers and stuff they’re like the place is really it’s a dope place and there’s even more editions coming down the road okay so then last night i fully look into the company i dunno i’ll read them latest reports on it i check out the latest company’s presentation and all those sorts of things i
Look into the management and i just loved everything i saw you know i love the business model i’m like i can definitely see this company making a lot of money not just on the top line but on the bottom line overtime so here to do i went ahead and i bought some shares kay i bought 10,000 shares to be exact playing at 13 so a decent sized position nothing way easy
Here and we’ll talk about why i’m so excited about this one in this video and why i think we’re gonna do great in this but i’ll also talk about a little bit of the risk involved with a stock like this but i did buy 10,000 shares here today my cost based on those shares was a dollar and 43 cents and i will say it was fishy why the stock just started to go up and up
After i bought in it i’m thinking we have there might be a rata fidelity or something that’s keeping track on my account and leaking information to hedge funds or something like that because literally right after i bought also in volume start to spike in the stock it was a little weird i’ll just put it like that okay and i’m kind of mad about that because i want
To buy a lot more shares of this stock i want to buy another yeah well i don’t want to say a lot more but i want to buy about another 5,000 shares or so in the public account as well and the stocks are started shooting up you know pretty much within an hour of me buying okay now let’s talk a little bit about this one why i’m excited about this one why i think i’m
Gonna do very well in this over time or at least have a you know the risk reward is very attractive for me in a stock like this so let’s talk about this one in depth okay this is a las vegas mj entertainment on clecs okay they just came off a year where they did 63 million dollars in a revenue and this was the first year of their entertainment complex being open
Okay and they did 63 million this was the first full year like that’s a very impressive number for the first full year of this establishment they had over 1 million plus visitors in 2019 and they got about 9 percent of the mj sales in nevada okay in 2019 so very nice market share now in terms of where their location is at it’s just a little off the strip but it’s
Very easy to get to if you’re like you know staying at a hotel or something like that staying at the mirage or bellagio or the wind or the palazzo or somewhere like that it’s very easy to just take a little over a lift ride over there hopefully you’re taking an uber ride you guys know why i got over 3,000 shares at ober so make sure you take an uber brat if you go
Over the planet 13 alright so it’s very easy to get over there and when it comes to a business small like this it’s all about marketing it making sure it’s marketed so everybody on the strip knows about your establishment and then when they come back on future vacations they you know visit your establishment as well if they want to you know hang out there if they
Want some mj or something like that okay now we look at these numbers a little more in-depth they’re consistently doing 16 plus dollars per quarter now and that’s in terms of revenue those are very impressive numbers because remember this business is just starting to ramp it’s one of those businesses like once people figured out an establishment you’ve market it
To them that’s phenomenal and then they can towhead and tell their friends and family about it when they come back on trips in the future to vegas they can go ahead and they can visit this establishment as well and keep in mind it’s not just about this las vegas establishment because they will have more of these complexes over time which we will talk about in just
A moment here okay but 16 million dollars consistently a quarter they’re doing now and they have some exciting things coming in 2020 okay so in q2 of 2020 that’s their targeted launch of planet 13 brands statewide so essentially they own a bunch of different brands i’m probably showing you now actually have a beautiful glass display with a bunch of their different
Brands where they can make gummies and brownies and cookies and all these different things like that actually right at the establishment you can actually wash them making you know all these different products it’s pretty dang cool and so in terms of they’re gonna have distribution likely within the next quarter to to other dispensaries all around nevada and think
About maybe even down the road magic if there was you know full legalization someday in the united states of america which there will be i do we just don’t open it won’t be will it be in like a year from now will it be like three years from now five years from now ten years from now i would say with almost 100% certainty there will be full legalization in the united
States of america in my opinion like i said within the next 10 years i would you know very much expect that and so imagine if they can distribute around the entire united states of america these type of brands long term that they’ve built because people have seen these brands they got used these brands they came to this amazing establishment when they were on a
Trip to las vegas or you know they they visit future places and i’m probably showing you another picture of it there it’s pretty awesome it’s pretty cool to see that there and just kind of hang out you know outside of there and just kind of look at you know the process and whatnot they also have a targeted opening of a los angeles superstore in q3 or q4 of 2020 and
This store is actually going to be a little outside of los angeles but that’s gonna be really exciting because it’s gonna be fun to see what a second location can do for this company okay and i’m in this stock because i believe they’re gonna have several several locations long term okay know in terms of their las vegas operations like you said it’s not just about
The defense sorry they got a coffee shop there they got a restaurant there which you know like i said was actually pretty dang good they got their experiential in-house production that you can actually see people making like the gummies and the brownies and cookies and all those different items there they even have an event space they have a bar there and they’re
Talking about they want to hopefully within the next year so get a night club opened up in a lounge we actually use the products legally at their establishment which i think would be an awesome awesome thing if they could have a lounge there or a night club long-term i think that’s a game changer for the company long term and it puts a company in a position where
Folks can you know utilize the products in the establishment and stay there for a much longer time than basically just you know getting the product leaving or getting the product going and getting coffee they’re getting the product and maybe getting some food and then leaving you know if they could have a night club allows those sorts of things it’s definitely a
Game changer okay so that first out-of-state expansion is they gonna be in santa ana and they’re targeting an opening of that you knew the q3 or q4 of 2020 so that’s very exciting now in my opinion it should be if we’re looking out at 2025 and as long as this business does good and they execute which i believe they will we’ll talk about that in just a moment i
Think they can get to five to ten locations by 2025 now the las vegas location will probably always be the biggest location and probably the most profitable location probably the biggest revenue generating location at least in my opinion but it is certainly a possibility that they will have five to ten locations well over the next five years as they expand the
Business now they’re talking about their five-year u.s. objectives they’re talking about they want eight or more super stores in tier one markets across the united states they say if a city is affluent enough to support a major sports team planet thirteen is interested in opening a premium mj store okay so you can think about you know some of these cities you know
In san francisco la san diego seattle vancouver you think about toronto you think about boston new york washington dc we know the politicians you know they love the mj over there okay we think about atlanta miami houston dallas phoenix all these have huge potential markets you know denver’s you know that’s almost a no-brainer in my opinion probably third or fourth
Location there so you think about this anything about a company that has these huge establishments these awesome entertainment mj establishment the ability to go market by market as things get legalized whether it’s on a federal level or state level over time okay so that’s really really exciting so if we’re looking at the latest three months they had almost sixteen
Point seven million dollars in revenue gross profit came in at almost ten million that’s a very impressive number there for gross profit adjusted ebay da came in at about three point three million now they didn’t lose money on the bottom line that i had a net loss of about 1.7 million but i will say i do think they actually have a decent probability of having a
Positive net income in 2020 and if they do take a loss i think it will be a very minimal loss for the company i can see this company doing anywhere from like negative one cent of eps to maybe all the way as good as like let’s say plus like eight cents or nine cents which would be really really saying for how young this business it’s also a business that it’s not
Like some of these other mj players where they’re losing mass amounts of money and they’re gonna continue loser and mass amounts of money and one of the other things that excites me so much about this one you check out this balance sheet the balance sheet is completely different from what you’re used to an mj space usually in the mj space you’re looking at oh my
Gosh horrible balance sheets i mean debt loaded to the sky balance sheets with a very little cash and that’s why a lot of these companies are gonna go bk or even have to load up on more debt if they can even get the financing for the debt there are a lot of them are in very bad financial position in the mj space and that’s why i seen a lot of these stocks just go
Down and down and down because a lot of them are not gonna make it and if they do make it is gonna be by the skin of their teeth okay so cash on this company eighteen million dollars in long-term debt of less than 1 million dollars that’s a strong a balance sheet okay especially for the mj space like i haven’t really seen a balance sheet that can even touch that
One day or even close to it when it comes to a cash versus debt ratio they’re looking at a company with inside ownership of over 60% on which i love you know when insiders have a big you know stake in the company because you know their their their interest in my interests are aligned we all want to make a lot of money in the stock over the next five tenure and
So i love the fact that they have a big ownership position now in terms of the gentlemen that run this company the three kind of main guys you know all and i definitely like and i think they’re kind of the right type of people to be running a business like this i really do okay so uh robert gross back okay i think he goes by a name him bob rather than robert he’s
Co-ceo and he’s usually the one you’ve seen a lot of interviews and whatnot this gentleman is a former mayor of henderson okay which is a suburb of las vegas he practiced law for 25 plus years okay he’s a serial entrepreneur and i think he’s a perfect type of person to be leading a company like this why he’s knows government he knows law he knows how to get things
Passed he knows how to work with regulations and the government’s in general and this cannot be overstated enough when you’re talking about the mj space and you’re talking about a lot of moving parts here you’re talking about things changing you’re talking about you’ve got to get you know get along with governments and state regulations and federal regulations and
How do you do all this it’s good to have a law background and actually you know worked in government so i think he’s actually one of the most perfect people to be leading on type of business like this okay then in terms of the other co ceo and board member larry there he’s a founder of the largest private printing company in nevada okay he’s also been in government
As well okay she’s a former city councilor it is a managing director of real estate companies owning over 1,000 acres okay so i actually think you know the perfect type of people would be leading a company like this have worked in government at some point in time i think that’s really really important okay and turn is a dennis logan he’s the cfo of the company he’s
Been a cfo of multiple public companies he’s got 17 plus years in investment banking which i think is a big if this company needs to raise money down the road which we’ll see because i mean imagine if the las vegas operation is very very profitable they get that santa ana property you know let’s say the profitability within the first year year and a half that is
Open or something like that they might end up just throwing off enough cash that they could actually self fund and self-build some of the properties but i would imagine though raising capital over time so they can you know just build things a little quicker then you know trying to save up and then take that net income and things like that okay there are several
Different interviews with the co-ceo on you that i watched you know pretty much all them last night and i definitely enjoyed them i think he’s got a great vision for the company i think he’s got its head on straight and i think he’s gonna you know i think there’s a good decent probability that he’s gonna make a big success of this company let’s just put it that
Way okay now in terms of some of their products because remember this isn’t just about the venue’s they have this isn’t just about that you know the physical retail they happen all those sorts of things in the restaurants and maybe the club’s down the road and lounge is also about the products that they can you know ship out to you know other dispensaries over time
Because of these brands that hopefully they successfully build over the next few years they got a trendy brand they got the medicine brand they have a leaf in vine brand you can you know pause the video if you want to look in more in depth about any of these brands they have the dreamland chocolates brand okay i think this brands called haha i think is the perfect
Name if that’s what it’s actually called for infused gummies okay they got the planet m brand and i think that’s just phenomenal okay now in terms of why can i not put a ton of time money into the stock like let’s say why can’t i put $100,000 into the stock or something like that the reason that i can’t at the end of the day for this plane at 13 is it because it is
On over-the-counter type stock okay which is there’s definitely more risk there’s a much less regulation and so and it makes sense for a smaller company like this to you know be on the otc and then as the company grows up and maybe they get to a place where they’re doing a hundred million dollars of revenue a year 150 200 million then you can grow up and you can
Go on to one of the big exchanges at those pouring time but for right now the company is on the otc okay and it’s not like you know an amazon that’s on the nasdaq or you know what johnson johnson that’s on the new york stock exchange you know the you know requirements and the regulations for companies that are on those type of exchanges is totally different than
A stock that’s on the otc so that is why i cannot make this into a huge position but this plane at 13 stock is a perfect type of stock for me from a perspective of if i want to take a more of a speculative risk out there like well you guys know i don’t like to take huge speculative risk this company’s already proven they’re doing you know 60 plus million dollars
In revenue i can definitely see that number jumping to a hundred million plus within the next two years holly within the next five years i can see this business getting to a place where they’re doing 200 plus million dollars of revenue i think that’s really important the valuation for this company we’re looking at a market capitalization of around 200 million i
Think when i bought in today it was actually a little under 200 million which is not incredibly expensive if this is a company that can get to a place where they’re you know have net income of 10 million or 20 million dollars which i definitely think it’s a possibility within the next couple years so i’m looking at this one and i love it the balance sheet like you
Cannot find good balance sheets in the mj space almost all them are disasters like i just came off of looking out to a ton of companies in the mj space and almost company after company i was looking at them and i’m like me and these balance sheets are really bad and a lot of these companies are gonna go bankrupt or have to you know sell out to another company or
Something’s going to have to happen here because a lot of those can those mj stocks or losing a ton of money on their bottom line right now that it’s not expected to change anytime soon and they’re running out of capital very fast and they’re already debt loaded playing at 13 stock it’s not in that type of situation at all so i really like this one as like you
Know a multi-year play if i’m thinking out like five ten years from now it’s definitely more speculative than most stocks i buy out there but when i looked at it i was like you know i think that i think you know i always think in terms of risk reward and i think the reward potential here is you know massive if this becomes a very very successful company and it
Builds into a company that does a half billion dollars or a billion dollars of revenues over the next ten years and imagine what’s gonna hit the bottom line versus a risk that this company you know goes bankrupt and the stock goes to zero or something like that i think you know the rewards side definitely kind of favors me as an investor in this particular one guys
But i would love to hear your opinion on this planet thirteen stock down there in that comment section if you’ve ever looked into it if you want to go ahead and look into it you know go to google and type in like playing at 13 and best relations page make sure you always do your research before you buy any stock in general out there guys so i hope you enjoyed this
Smash thumbs up button if you enjoyed today’s video as always thank you for watching have a great day
Transcribed from video
Why I Just Bought 10,000 shares of Planet 13 Stock! By Financial Education
