3 Key States for Pot Investors

Cannabis investors in search of smoke signals should keep a keen eye on these crucial states. --------------------------------------------------------------------------------------------------

View this email in your browser Cannabis investors in search of smoke signals should keep a keen eye on these crucial states. Plus, the FTC wants to know what big tech stocks are hiding, and the biggest IPO ever could come from ... the U.S. government? — Nathan Alderman, Stock Up Editor The 3 Most Important States for Marijuana Stock Investors Wall Street estimates that the global cannabis market could crack $50 billion in sales a decade from now — at minimum. With the United States potentially poised to be the biggest market in that sea of green, investors might want to zero in on a handful of states that present the most lucrative opportunities for this budding industry. We've found three places where legal cannabis could be a big hit: California. The initial launch of legal weed here completely face-planted, with sky-high taxes and reluctant localities driving legal pot revenue lower from the days when only medical marijuana was approved. Still, California's status as a huge state with, er, well-documented enthusiasm for weed suggests that those sales won't stay down for long. Florida. The lovable underachiever of states may not be No. 1 in nationwide legal pot sales, but like a certain Jacksonville-based pro sports franchise, it's able to execute a lot better than you might assume. Smart policy has led to a thriving medical-marijuana market, and it's pushing to legalize all weed by 2022. Nevada. What happens in Vegas stays in Vegas, and Nevada's combination of legal marijuana and abundant tourism could mean that a lot more cannabis consumption happens in Vegas — and a lot more out-of-state dollars stay there. Some estimates suggest Nevada will lead the nation in per-capita cannabis spending by 2024, creating an opportunity for shrewd operators to hit the jackpot. For more on why you should look at these states — I mean, really look at them — read the rest. Already subscribed to a premium service? Click here to view your subscriptions. Not a member yet? Click here to sign up! Watch: Bull vs. Bear Markets We break down the basics of bull and bear markets — where the names come from, what they mean, and how you should invest in each kind of market condition. Regulators to Tech Giants: Who Are You Buying? Under federal antitrust law, companies have to cough up the details of any other businesses they purchase over a continually adjusted dollar threshold. The law assumed that only buyouts of big companies could really affect competition in a given market. But when it comes to Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon.com (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Facebook (NASDAQ: FB), and Microsoft (NASDAQ: MSFT), the Federal Trade Commission has decided that standard isn't good enough. The FTC is wondering whether the tiny companies these big names have swallowed up in the past 10 years might have otherwise grown up to challenge their current owners. The agency voted unanimously to get more information that'll help them understand what kind of purchases the tech giants are making, and whether the government needs to pay closer attention to smaller deals in the future. Considering how quiet all five of those companies remain about their fairly frequent purchases, that might not be the worst idea. For more on how often big tech names buy small contenders under the radar, read the rest. Not sure what to ask your smart speaker? Keep up with what's happening in the market by adding our daily flash briefing to your home assistant. Just look for The Motley Fool on your Amazon Alexa or Google Home app, click subscribe, and then you're good to go. Uncle Sam Prepares to Set Fannie, Freddie Free Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) buy up and backstop mortgages from banks across the country with the aim of making housing more accessible and affordable for everyday Americans. They started out as government programs, got spun off into public companies, and then ended up right back under the government's wing after the catastrophic housing crash of 2008. But now these, uh, large adult birds may finally be ready to leave the nest. Again. Technically, Fannie and Freddie still trade publicly, but the government owns close to 80% of their shares — if it owned all of them, the government would have to move Fannie and Freddie's debts onto its books — and has been keeping 100% of their profits. Now the government says it's ready to end that process, and it's handing Fannie and Freddie up to $45 billion of their post-crash profits to go make their way in the world. Estimates peg a Fannie/Freddie IPO at a total valuation of around $100 billion. Considering that the biggest IPO to date brought in $25.6 billion, that's, you know, not small. However, before you start to salivate, remember that Fannie and Freddie are very unlike the majority of companies on the market, and potential investors will confront a number of questions that don't entangle most IPOs. For more on the challenges Fannie and Freddie still face, read the rest. FEATURED PODCAST T-Mobile/Sprint Merger: What's Next? A federal judge signs off on Sprint's $26 billion merger with T-Mobile, sending both stocks higher. Jim Mueller analyzes the news and what it means for both investors and customers. Subscribe on iTunes Easily track your favorite stocks with our new browser extension for Google Chrome. Add it to Chrome by going here, then open a new tab and use the "Manage Tickers" button to customize the page with your favorite stocks. Quick Reads Party over, oops, outta time? 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