diff --git a/README.md b/README.md
index f52ed13..2db92ae 100644
--- a/README.md
+++ b/README.md
@@ -61,7 +61,33 @@ Currently, the compile can only handle short, unmasked sequences, but it does co
 	PHA         ; 4 cycles
 ; Total Cost = 24 cycles
 ```
+## Limitations ##
 
+The current state representation removes data from the sparse byte array whenever a store action is queued.  This prevents certain optimization that redundently store the same byte more than once, in order to minimize other operations.  For example, the byte sequence `$11 $22 $22` currently generated the following, sub-optimal code sequence
+
+```
+	TCS		; 2 cycles
+	SEP	#$10	; 3 cycles
+	LDA	#$11	; 2 cycles
+	STA	00,s	; 4 cycles
+	REP	#$10	; 3 cycles
+	LDA	#$2222	; 3 cycles
+	STA	01,s	; 5 cycles
+; Total Cost = 22 cycles
+```
+
+The optimal code sequence is
+
+```
+	TCS		; 2 cycles
+	LDA	#$2211	; 3 cycles
+	STA	00,s	; 5 cycles
+	LDA	#$2222	; 3 cycles
+	STA	01,s	; 5 cycles
+; Total Cost = 18 cycles
+```
+
+Notice that byte 1 ($22) is loaded redundently, which results in the 16-bit LDA/STA code being 2 cycles slower that the equivalent 8-bit code.  However, this 2-cycle penalty is more than made up for by the saving gained from avoiding the 6-cycle SEP/REP pair in order to enter and exit 8-bit mode, resulting in a net savings of 4 cycles.
 ## License
 
 MIT License