Shares of Planet 13 Holdings (CNSX: PLTH)(OTC: PLNH.F) and Mudrick Capital Acquisition Corporation (NASDAQ: MUDS) have been in tears since February. Your returns of 25% and 40% are very impressive given the fact S&P 500 The benchmark only rose by 8.6% over the same period.
What is behind the luxury cannabis operator and the (imminent) rallies of the legendary trading card company? Well, the strength of their brands alone is enough to take their inventory to new levels.
1. Planet 13 Holdings
Planet 13 could be the most unique cannabis company in the country. Instead of rushing to open a large number of pharmacies or building wholesale partnerships, the company is dedicated to marijuana superstores. The Las Vegas flagship store is just minutes from the Vegas Strip and is open until 3 a.m. on weekends. The house also has a cafe, restaurant and interactive experiences like LED floors.
Almost $ 70.5 million in 2019 Planet 13 revenue came from its Vegas business and accounted for about 10% of all cannabis sold in Nevada. Due to a one-time decrease in traffic related to COVID-19, sales increased by only 10.8% compared to 2019. Towards the end of the pandemic, party-goers are returning en masse to Sin City.
The catalog of vapes, edibles, flowers, extracts, pre-rolls, tinctures, and themes is extremely popular with tourists from nearby resorts and casinos. Planet 13 also plans to open a second supermarket in Santa Ana, California in early July. It is conveniently located just a 20 minute drive from Disneyland. The company plans to implement home delivery as a core feature. In addition to the two locations mentioned, the company already operates a neighborhood pharmacy in Nevada.
Investors expect a sharp spike in the company’s sales this year as its stock trades for 8.7 times the futures deal. Before the pandemic, the company grew sales an impressive 200% per year, so expectations seem pretty reasonable. Additionally, insiders own nearly half of the company, which shows management’s high level of confidence in Planet 13’s long-term prospects. This is definitely a lucrative cannabis stock to try right now.
2. Topps (Mudrick Capital Acquisition Corporation)
The Special Purpose Acquisition Company (SPAC) Mudrick Capital plans to take over the trading card and confectionery company Topps by the end of the year. For over 70 years the company has worked with the MLB to collect trading cards for baseball.
Don’t be put off by what appears to be a niche market. There is a whole market of loyal fans happy to pay for memorabilia. Currently, limited edition cards for rookie players can fetch between $ 1.0 million and $ 5.2 million apiece at auctions.
In addition, the company expanded into the blockchain industry by offering baseball cards for sale as non-fungible tokens (NFTs). It is planned to sell 1.38 million virtual cards by the end of April. rare cards come with animated backgrounds or holographic effects. The technology assures buyers that they will receive authentic versions of the cards during the auction or resale.
The company also works with other well-known brands such as Formula 1 and Star Wars to release collectibles. It also has its collection of interactive card game apps and gift cards. Last year, e-commerce sales soared to $ 92 million from less than $ 5 million in 2015. This side of the business has a highly scalable model that the company uses to sell its cherished cards to other countries may be popular in which baseball operates, such as Japan. Outside the sports and entertainment segment, around a third of sales come from the sale of sweets. Its brands like Ring Pop are consistently in the top 4 in the country.
The company’s revenue increased 23% year over year to $ 567 million last year. It expects further momentum with an estimated annual sales increase of 22% this year. This is very cheap when you consider that company value (EV) is only twice as high as sales. All of these factors make Topps’ SPAC a top growth stock for investor portfolios.
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