Ann: Financial Report for 30 June 2018, page-23

I follow a lot of stocks I don’t own and don’t have interests in. I followed NST for a long while before I got confident enough to buy (have since exited). I’m also interested in how the lithium sector evolves once it starts being driven more by performance and less by sentiment. PLS is one of the first new entrants out of the starting gate (for Lithium bubble2) so it’s performance will be a barometer for the share prices of other developers and explorers across the board. Sentiment can only carry a sector so far. I like studying the psychology of markets and the lithium sector is a prime case of the battle between psychology, sentiment, expectation or whatever you want to call it and reality. Are expectations too high or too low, where does the reality of the electrification of transport take this market? My guess is that it will take a real “people’s car”, like the VW beetle to reheat excitement in the market and the sector. What I see at the moment from the West are high end car makers with high end offerings, more toys for the middle classes and rich than real distruptions to the car market. High end offerings work while markets and economies are bubbling but are themselves subject to declining uptake if economies wane. A real distruption has to be able to cut through economic cycles. Maybe the Chinese, through necessity, will kick off the revolution with a domestic version of the Beetle, who knows.Esh