Chart, page-128

Waiting for sub 60c now, maybe sub 50c. The MM trade has been going since late Feb now so I think it's beginning to run out of puff. AC8 and a few of the others just can't support these market caps with the lack of information on government policies and implementation. $1bn combined market cap for the listed pot stocks for a shot at circa A$100m in potential revenue in the Australian medicinal cannabis space - how much of that do you really think is going to be profit? Looking at the Canadian and American listed guys (who are in a much more lucrative area in terms of regulatory and market size) - none of them have managed to squeeze out a profit yet! Canopy as the golden child of AC8, which people keep referring to as AC8's benchmark - only made $12.7m in revenues and lost $3.5m in FY16 (nice profit margin of -27.5%) - this on a company with a market cap of $1.6bn. When I first caught onto the space, did initially think there could be some legs to it but after looking at some of its global peers and their P&L's - can't see what these are being valued on. I definitely think there are some good trades in the sector, but longevity will only come IF recreational legalisation comes through, which is a massive IF and the better part of a decade away. Genuinely can't see markets supporting these prices at this point in time but happy to trade the fact and sell the rumour if need be.