This Surprising State Is Bringing Us the Best Marijuana Stocks to Invest In

California and Nevada's legal marijuana markets range anywhere from $100 million to $3 billion. And they have some of the best marijuana stocks to invest in right now.

But that's about where these states' similarities begin and end.

If you've been reading along with Money Morning, you've likely read about the patchwork of cannabis regulations taking a big chunk out of California's multibillion-dollar market potential.

And while California is finally getting its act together to reap the benefits of its market, Nevada had its regulation and taxation laws squared away from the get-go. Because of this, its cannabis sales are in the process of rocketing 690% from 2017's $103 million to $814 million by 2025.

This level of growth potential alone makes Nevada a global marijuana powerhouse. But it gets even better. Something big happened in Nevada back in September. And it was a huge boon for some of the best cannabis stocks out there.

This is something folks won't want to wait to jump in on. And it's easy to do...

Cannabis Tourism: Alive and Well in Nevada

When most of us think of Nevada, Las Vegas tends to be the first thing that comes to mind. And it's no surprise, considering it receives over 40 million tourists each year...

Las Vegas isn't the only city in the state that receives swaths of tourists either. Reno also brought in around 5 million tourists in 2018.

And during these tourists' vacations, many of them are keen on trying one thing: cannabis. You see, if tourists wanted to try marijuana before, the go-to places used to be Amsterdam or Vancouver.

But now, marijuana markets are popping up left and right. And U.S. tourists don't have to leave the country to try marijuana out.

It's safe to say Nevada is poised to become a massive cannabis market thanks to tourism. And major cannabis firms have already begun to realize this. They know they have to set up shop in these areas - and they have to do it ASAP.

And we have two cannabis stocks that just did...

Two of the Best Cannabis Stocks to Buy Now

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Right now, Cresco Labs Inc. (OTCMKTS: CRLBF) is in the process of buying a firm called Tryke, which has "Reef" dispensaries spattered across Las Vegas.

Once the deal is complete, Cresco will become a dominant player in the Las Vegas marijuana market. The buyout will give the firm a lucrative 8% market share. And on top of the Reef dispensaries - which are only second to Planet 13 Holdings Inc.'s (OTCMKTS: PLNHF) stores - Tryke has a Reef dispensary in North Las Vegas that sees the highest traffic in the state.

But it also has locations outside of Las Vegas, too. Just outside of Reno, there are dispensaries in the Sun Valley and Sparks markets.

What's even more exciting, though, is the fact that this acquisition gives Cresco a hold in up-and-coming locations like Arizona and Utah as well.

While Arizona doesn't have recreational marijuana like Nevada, it's poised to see it legalized very soon.

Arizona's marijuana market is similar to Florida's, and the best cannabis companies are taking notice. The top cannabis firms around are bound to duke it out in places like Arizona and Florida.

And Cresco is one of those top marijuana firms.

To solidify its position in these markets, it paid over $282 million to Tryke. Tryke wanted much of the purchase to be in the form of Cresco shares, as they believe it's extremely undervalued - just as we do.

But Cresco isn't the only cannabis firm trying to strike while the iron's hot. iAnthus Capital Holdings Inc. (OTCMKTS: ITHUF) also acquired operations in Northern Nevada.

Recently, iAnthus received four licenses for Nevada-based retail operation to complement its preexisting cultivation operations that sell to other dispensaries.

While the licenses are currently delayed by litigation, iAnthus is still making moves.

iAnthus didn't want to wait before entering the lucrative Silver State market. So, it bought the firm Sierra Well for $27 million.

And by now, it shouldn't surprise you - the sellers are taking over 80% of the purchase price in iAnthus shares.

Sierra Well has two Nevada dispensaries, one in Carson City and one in Reno. Carson City is a little south of Reno, and California residents from the Bay Area drive right through it when heading to Reno.

iAnthus' acquisition netted the firm more space for cultivating its brands to sell them to dispensaries across the state.

Unfortunately, competition and regulatory issues have hit a lot of cannabis stocks.

But these acquisitions have taught us three things: The fundamentals still matter with sales and profits, firms are still scrambling to get their share of some of the most important marijuana markets, and those that own cannabis stocks from these companies are unwilling to sell - even at the low levels they're at now.

These savvy investors are waiting for the flood of higher valuations. And it will happen. The potential profits you can reap from marijuana stocks make the current rough markets well worth the wait.

America's Favorite "Shark" Debuts Summit for Finding Unicorn Startups

Angel investing is taking the world by storm.

Everyday people from coast to coast are now backing little-known startups long before they IPO, and they're exploding in value, becoming worth billions upon billions of dollars.

But when you're in the position to have all of these exciting deals at your fingertips, you need a way to determine which could be winners - and which are nothing more than hype.

As you'll see in this brief video, the Angels & Entrepreneurs Summit is exactly the ticket...

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