Apology to Tippy re SP

Hi Tippy

Mea culpa - I did not check back to the ASX (should have but didn't) - apologies.

As to why I am always positive

a. I am a long term holder (over three years now)

b. This post gives my reasons


1. There is no need to refinance before 2023

2. Volume production starts in 2020

3. The tax advantages of MIS are still available - high net worth Australians on high incomes have a tax rate that looks like being near 50%

4. The traditional market for the product is still there and the alternative has suffered from over harvesting.

5. The pharma market is developing with multiple products in Phase 2 and one entering Phase 3.

6. The issues raised by Glaucoma and the AFR relate to management failures not the business model - change the bosses has worked for other Coy's in the past.

7. The employment of large numbers of local staff has meant that the WA, NT and QLD govts will be loath to see the collapse of the business.

8. Whilst they have lost two contracts they have others still in place based upon the Aust sandalwood product.

Anyway that's why I am optimistic - it is so similar to Whitehaven it is eerie.

IMO and DYOR

c. When you look at the timing of the Galderma cessation i.e. Dec/Jan 2016 with a review in July 2017 then you look back at the US political scene at that time i.e. ascension of Trump and majority Republicans with their objectives i.e. repeal Obamacare, cancel the Free trade deal , American jobs and deals first, Tax deductions designed to bring multi national money back to the US etc etc it to me starts to make some sense.

So in conclusion I regard this current short tsunami as a passing dip which Imo will produce a rebound in time, just as Whitehaven rebounded once the demand for their product overrode the politically motivated bias against coal.

And yes I did buy some last week and yes I am underwater on that purchase as well

All IMO and DYOR (which I will do more diligently in future.

Now to watch another of my interests hopefully continue to come good after a horror of a couple of months - yes I am a Swans Foundation member for my this year sins.