COVID-19 Could Hurt This Pot Stock's Sales the Most
The COVID-19 pandemic is a massive problem -- one that investors need to factor into their decision-making process. But some stocks are a lot higher-risk than others. In particular, businesses that are dependent on tourism and out-of-state traffic are seeing a bigger impact on their sales and bottom lines. In April, retail sales in the U.S. were down 16.4% (seasonally adjusted) from the previous month, the largest drop since the Commerce Department began tracking the data back in the 90s.
Tourist-dependent companies like pot stock Planet 13 Holdings (OTC: PLNH.F), which is based in Las Vegas, are more vulnerable to the effects of travel restrictions and consumer wariness to leave their homes and could be in for an especially challenging year.
The Las Vegas Convention and Visitors Authority releases monthly data on people visiting the city. As expected, tourism took a big hit in April, with visitor volume down a whopping 97%. During the month, there were 106,900 visitors to the city compared to 3.5 million a year ago. Occupancy rates of less than 2% show there's minimal traffic going through Las Vegas these days.
Source Fool.com
