Cannabis becomes legal in Canada starting today and that is generating a lot of interest from investors. So, what can we expect when trading gets underway?

Real Money's Stephen Guilfoyle writes, "Many of you may recall that the state of California legalized the recreational use of cannabis back on January 1st this year. All of the cannabis stocks rallied into that event much as they have into tomorrow. I feel it more than likely that the industry experiences something similar in the wake of what happens in Canada tomorrow. That something similar was a selloff that lasted. Many of these names did not recover their January levels for another six to eight months. For those of you who have already enjoyed a nice run, I might take a little something off, and protect those profit" Read his full story here: O Canada: Recreational Cannabis Use Becomes Legal Wednesday.

Overwhelmed by the onslaught of companies crowding into this space? You're in luck. TheStreet's founder and Action Alerts Portfolio Manager, Jim Cramer, held a special Bootcamp How to Invest Like a Pro in New York

Jim's fireside chat took place in front of a standing room only crowd. If you missed it, no worries. Watch it here: Canopy Growth CEO: Here's What the Future of Cannabis Looks Like for Investors.

And that wasn't the only conversation around marijuana stocks. Debra Borchardt, TheStreet Contributor and Co-Founder, CEO and Editor-inChief of Green Market report had a lively panel: How to Play the Fast-Emerging Cannabis Industry.

Topics included:

  • The Good and the Bad. Bill Marcus said "You have to be very careful. Some of the basics, what is the management like? Have they had a successful track record? The same questions you'll typically ask, but many of these companies haven't had experience in cannabis before, so you really have to dig deeply, see what their ramp is, what their need is for cash." He added, "We try and take a litmus test and find the winners while they're private, while they're smaller.."
  • The Cannabis Brand. Jeffrey Maser, CEO, Tinley Beverage Co.,Inc. says "..when it comes to beverages, brand really is key. It's what consumers look for. When they build the trust in that brand, that's ultimately what wins the day for beverages."
  • Medical vs. Recreational. Rishi Gautam, Chief executive Officer, GrowForce says, "It's an interesting dynamic. For us, it's not one market, it's 50 markets with the states and each state has varying degrees of what they consider medical. And then you have Canada which is what we would really call pure medical..." He added, "and then Colorado is a great example where you have a shift from medical to recreational and then you'll have a shift back where there's an increase in patients.

So, what can we expect from the stock market following the legalization of marijuana in Canada? Be sure to check out Cramer Live from the floor of the NYSE everyday at 10 a.m. Follow us on Facebook for notifications on Jim's Live show.

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