Legal marijuana sales are already projected to reach $3.9 billion in 2017, and we have even better news for investors about marijuana stocks in 2017.
Marijuana stocks could soar even higher because Money Morning Director of Tech & Venture Capital Research Michael A. Robinson believes three more states could legalize marijuana in 2017.
"You see, marijuana advocates aren't finished with their fight. In fact, they're stepping up the pressure," Robinson said on Dec. 6. "They're now eyeing the opportunities that could arise in 2017 - and beyond."
Increased legalization creates more opportunities for businesses that grow and sell marijuana and marijuana edibles, equipment supplies, and businesses that rent and sell specialty marijuana real estate.
Even with those growth numbers, investors should be aware that investing in marijuana is still speculative. Many marijuana stocks are penny stocks because they don't meet the qualifications to trade on major indices. And penny stocks can be notoriously risky.
Also, investors are still waiting to see what will happen to medical and recreational marijuana policies under President-elect Donald Trump.
It's true investors should be cautious when investing in cannabis companies. But there's no denying marijuana is growing into a massive industry that will generate billions of dollars.
And investors who are forward-looking could make long-term gains.
You see, if two of these next states legalize medical marijuana, 60% of the country would have some type of legalized marijuana policy. Other states can look to places that have successfully implemented pro-marijuana legislation to start drafting their own policies.
And when they see how much money is being made, they will want to follow suit...
Must Read: Former Google Exec Quits Dream Job to Launch Marijuana Empire
For example, Colorado collected more than $135 million in marijuana taxes and fees in 2015. The state used the money mostly for school construction projects.
One of these next states could also legalize recreational cannabis, which means close to 20% of U.S. states could have legalized recreational marijuana laws in place by 2017.
These three states potentially legalizing marijuana next year provides more legitimacy to the industry and more profits for companies.
That's why this is the next big catalyst for marijuana stocks in 2017...
Marijuana Stocks in 2017 Could Skyrocket If These 3 States Legalize
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An initiative to put medical marijuana on the state ballot in Missouri fell short by just 23 signatures in 2016.
But there's still hope for marijuana legalization in Missouri...
Missouri Secretary of State Jason Kander has urged legislators to pass a medical cannabis bill through the Missouri General Assembly.
Robinson believes that after a near miss, marijuana advocates in Missouri will regroup in 2017 and pro-marijuana legislation will pass.
The other state Robinson is watching is Arizona.
Arizona's Proposition 205 would have legalized recreational marijuana use for adults 21 years of age and older. It would have allowed them to possess up to one ounce of marijuana and consume it in private.
But on Nov. 8, Proposition 205 failed by 2%. However, Robinson still believes Arizona could legalize recreational marijuana.
"Such a close defeat makes it easy for cannabis advocates to regroup and focus their attention on remaining hesitant voters. It's a state that already has a history with marijuana legalization. In 1996, the Copper State was one of the few states to adopt a medical marijuana program," Robinson said.
Some people view this next state as a long shot for marijuana legalization, but the odds may be better than you think...
North Carolina Marijuana Legalization in 2017
The third state Robinson is watching in 2017 will be North Carolina. Robinson believes it's a long shot, but he said North Carolina could take steps to legalize medical marijuana.
"In 1977, the Tar Heel State was one of the first in the country to decriminalize marijuana. Decriminalization is often a first step before marijuana legalization," Robinson said.
Another sign of eventual medical marijuana legalization in North Carolina came in 2014. Gov. Pat McCrory signed a law that allows state universities to conduct clinical trials using cannabidiol (CBD) oil.
Even with this progress, it's still not a guarantee North Carolina will legalize medical marijuana.
But Robinson says with decriminalization being a stepping stone for legalization, he places a 50-50 chance voters in North Carolina would approve medical marijuana in the next few years.
Robinson's groundbreaking 89-page report, "The Roadmap to Marijuana Millions," is available now to Money Morning Members. The "bible of weed investing" features the 30 best pot stocks on the market right now in edibles, dispensaries, biotech, and other cannabis segments. Any or all of these companies could make you a fortune. Click here to learn how to get your copy today.