 Good day, fellow investors. One of the new sectors that I'm researching is the chemical sector. And if you look at my list, it has a lot of very, very cheap stocks from a price earnings ratio. Now the key is to look at the whole sector to see what will be the future supply and demand trends and then see which company has competitive advantages, which doesn't, which is really a cheap bargain and which one isn't. Competitive advantages are most what you look at. And the second on my list is Albert Marle, the Lithium producer in 2017-2018. Everybody was crazy about Lithium and now they aren't. The price earnings ratio is close to 10. The growth forecast is staggering. So now is the time that I go and I dig deep into the sector. This is the first video of Lithium sector overview. I'll discuss Albert Marle and I'll discuss Lithium as an investment to take advantage of the EV trend. Let's start. So Albert Marle Corporation, very, very interesting, boomed from 2015-16 to 2017 and then crashed. And this is excellent to explain the difference between growth investing and value investing. Growth investors extrapolate exuberant growth rates and then buy at any price, not thinking about the risk. Those that bought Albert Marle a year and a half ago at 150 didn't think about the risk. They just thought Lithium will explode, will continue to grow at 40% over the next decade. It might not grow at 30%, but it might grow at 20%. When you apply that into models, valuations, crash down, and you have these kind of situations where stock crashed 50%, even if the sector is still positive. And if we dig deeper, I did receive a lot of comments about Lithium investments during 2017 and the first part of 2018. Since then, 2019, I rarely see comments about Lithium, which means now it is the time to watch it, not when it is inexuberance and when everybody is chasing Lithium investments. We have seen how those stories usually end, even with this company. So let's start with business overview. Albert Marle is a Lithium producer, has diversified operations, is expected to grow its Lithium segment about five times production, four times production by 2025. It has catalysts and bromine as side businesses. So let's see how this develops into an investment thesis. And let's see whether Albert Marle is now cheap or not, or if it is a good investment for you. Founded more than 140-40 years ago, 5600 employees. It has a dividend yield of 2%. It has been increasing the dividend for the last 26 years, something very important to keep in mind. It has a market capitalization of 7.7 billion. It produces Lithium, bromine specialists, and catalysts. The Lithium sector is the growth sector, but the bromine and the catalyst sectors are chemicals, stable chemicals, so nothing spectacular to expect there, except for cash flows to fund the Lithium growth. The company did extremely well in 2017. It bought back 500 million in shares thanks to the high cash flows. That was a consequence of high Lithium prices. If we look at Ibita, you see Lithium is the leader, 500 million, bromine, 300 million, and catalyst also there, just shy of 300 million. So Lithium is a little bit less than 50% of the company, and that's something we have to keep in mind. Bromine, used in flame retardants, catalysts used in oil production will be probably stable over the next decade, and you can expect the same cash flows while Lithium is the growth component. As there was exuberance and high demand, low supply for Lithium prices skyrocketed in 2016-17, part of 2018, then those crashed and consequently also Lithium producer stocks. However, the trend is still there. European car makers have invested hugely, have been hugely investing into the EV trend, and they will be using Lithium batteries, so this is still to come. When Volkswagen, the largest car producer in the world, comes onto the market, demand for Lithium will spike up, and that's also positive for Albert Marley and all other Lithium producers, but it will not happen linearly as many in 2017 expected. So electric vehicle adoption is there. More and more electric vehicles will be adopted, especially from 2025-2040. That's when the annual sales will probably really, really explode, as the technology goes from the current batteries to solid state batteries, and then also demand for Lithium should explode, and now the key is to find the best producers. I always prefer lower cost producers. If we look at the cost curve, Lithium, this is from Lithium Americas, but Albert Marley has Chile brines, so very low cost, and then they have also other production that is there in line with the cost depending on what you need, whether carbonate or Lithium hydroxide. If we look at their growth projections 2018, 65,000 tons, 2021, 165, so three times growth, and then going even higher at 300,000 tons of production 2025 and onwards over the next decade. So if they do that with the same earnings margins that they have now, we can expect 1.5 billion, 2 billion in EBITDA from Lithium. Everything that they developed is developed under contract, so they develop when they get the contracts with the customers fixed prices. So even if Lithium prices have fallen out, that doesn't affect them immediately, only long term for new contracts. So this is my earnings model, very, very simple. I expect growth in earnings of about 10% per year. It won't happen linearly, but over the long term it will happen. And at some point they will reach earnings of 1.5 billion, let's say in 10 years. The stock price should then be at least double. If there is an exuberance situation like it was in 2017, the stock price will be even triple quadruple at 300. So this is the margin of safety earnings model. If you buy it now and then it goes to 300, you sell it an exuberant, you have quadrupled your money. If it remains stable like it is now, it will be just a double over the next 10 years plus the dividend. So you are around a return of 10%. There are also risks. Bromine catalysts can see smaller demand as it has been the case recently, lower cash flows. Then you don't know whether Lithium will be used into the production, into the sector, or there will be some other technology. Will it be carbonate? Will it be hydroxide? How will Albert Marle fit into their supply demand situations? What technology will be used? So that's something that is an unknown. However, given where the market is going, given the incredible amounts that are invested into EV, Lithium technology, we can expect that over the next decade demand will be there and Albert Marle will be there to supply for that demand. Now the situation in the Lithium environment is extremely negative and now it is the time to look at it with price earnings ratio, ratios around 10 with the growth practically received for free, not in 2017 when everybody was exuberant and valuations were really, really crazy. So I'll be digging deeper into the Lithium sector because now it's interesting, I will be analyzing other stocks, mostly for my stock market research platform, if not to crowd YouTube with too many videos, but I'll do another video probably on Lithium to summarize what I have found in the coming weeks. So thank you for watching, please subscribe to the channel to get all what I do summarized in 5 to 10 minute videos and I'll see you in the next video.