TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Nevada’s recreational marijuana market continues to record strong growth and the state has been blowing away expectations.

When compared to Colorado, Nevada’s recreational marijuana market has been generating significantly more revenue (four-months after the market opened).

During October, Nevada generated approx. $38 million in revenue from recreational marijuana. Four months after Colorado’s recreational marijuana market opened, the state generated approx. $22.5 million in revenue.

We are favorable on the Nevada marijuana market and stocks levered to this market have been performing extremely well.

Friday Night Announces a Transformational Acquisition

Last week, Friday Night (TGIF.CN) (TGIFF) and Body and Mind Inc. (BAMM.CN) (BMMJ) announced a transformational deal. Under the terms of the agreement, Friday Night will acquire BAM for approx. $115 million in stock.

We are very bullish on the combined company which would have 130,000 square feet of facility projects under development. This would make the combined company one of the largest cultivation and production companies in Nevada.

This is an attractive merger for several reasons. First, it is expected to be immediately accretive to cash flow. Second, economies of scale would significantly lower the per unit costs and would drive efficiencies such as packaging systems, extraction, dosing, testing, distribution, and marketing. Finally, the combined company would have an enhanced product line and higher production volumes.

Tahoe Hydro: An Emerging Opportunity

We are bullish on the Nevada medical marijuana opportunity and in November, we highlighted a company that we are favorable on. The company, ALQ Gold Corp. (name change underway) is positioned as an investment company and are planning an aggressive consolidation play with Nevada firmly in their sights.