CSA Holdings Inc (OTCMKTS:CSAX) Is A Top Long Term Cannabis Stock

With the cannabis legalization push now in full swing, and states signing off on both recreational and medicinal use across the US, there are a certain number of satellite industries that are going to have to develop in order to support the marijuana industry infrastructure. Banking solutions is a well publicized area that needs working on, and that we will no doubt see advances in over the coming quarters. Another, however, and one that is just as important as banking in many aspects, is security.With the number of retailers and growers on the rise, there's going to be a lot of raw material cannabis left vulnerable to theft. This, and the fact that with things like cannabis distribution, between retailers and distributors/ manufacturers/ growers, there's a large supply chain risk.There are a number of companies working on this issue right now, but few are as well established in cannabis security as CSA Holdings Inc (OTCMKTS:CSAX). Through its subsidiary, Canna Security America (CSA), CSA Holdings has grown to become one of the go to names in securing the cannabis industry infrastructure, initially in its home state of Colorado, but increasingly nationwide.The company just picked up a listing as one of the top 20 long term buys from the CANNAINVESTOR magazine, with the publication stating the following:

"Tom Siciliano and his team at CSA are on track to be one of the largest security companies within the cannabis industry"

But what's our take?Well, we fall in line with this evaluation. In the space right now, there's plenty of speculative capital, but a large portion of it is still reluctant to expose itself to companies that are directly involved with growing or selling. The legal framework that underpins these elements of the sector are very much immature, and a company that may look great could easily become bogged down in legal issues if it falls foul of one of the complexities of said framework. Companies that aren’t directly involved in these things, therefore, are attractive, not just because the offer an exposure to the industry growth (and there will be industry growth, or that there's no doubt) but also because they offer this exposure while reducing concurrent exposure to the plant itself.This, in turn, plays into a bull thesis for CSA. The company is set to benefit from cannabis industry expansion, but by not growing or selling, the chances of it getting hit by a legal concern are far smaller than many other exposures.The recent management shuffle makes the company even more attractive. In August, the company announced a restructuring, with the previous CEO stepping down, the COO taking the role of President, and the company acquiring an entity called Big Al's that enabled them to expand into Oregon and Arizona instantly. The acquisition is cash restricted, essentially nulling any potential for near term dilution in its wake, and looks to be the first of many such transactions that expand the company's base.The big concern with this one is clarity. It's not filed any audited financials since earlier in the year, and so we don't really know how fast it's growing, outside of a pretty vague press release detailing 17% revenues growth in the first quarter of 2016, when compared to the comparable quarter in 2015. As such, we also don't know its cash position.The lack of filings is almost certainly a result of the pending (and ongoing) restructuring, but once the dust settles, we're going to have to see some audited financials if we are going to maintain a bullish bias. The industry expansion is there, and the company growth is there (albeit reported through PRs), and now we want to see some numerical growth reported with the SEC.We will be updating our subscribers as soon as we know more. For the latest updates on CSAX, sign up below!Disclosure: We have no position in CSAX and have not been compensated for this article.