 Good day fellow investors! I just spent a few days researching the uranium sector and I wrote a 40-page research report on the sector and five stocks. So I'll make three videos and try to summarize or to give you a view of what are the facts that I found and to give you an objective perspective on investing in uranium. So in this video we'll discuss the bullish thesis, I'll make another video about the bearish thesis and then I'll discuss five stocks and then I'll summarize everything in a fourth video. So I think this will give you really a good perspective on uranium. It will save you a lot of time because a lot of time went into analyzing this and then you will see how the five stocks or the general uranium sector fits your investment risk-reward perspective and whether you want to hold this in your portfolio or not. So let's start with the market. As you can see here uranium prices were very very low in the 2000s then as demand increased and there wasn't enough supply as the marginal producer sets the price, the price of uranium spiked above 100 which was the spot price. There are two prices for uranium, the long-term contract price used by utilities and the spot market price that you can buy uranium as of now. So as you can see 2007-2008 it peaked, then it declined again, then it was a peak and then Fukushima happened unfortunately and then the price kept declining. So now we are at around $30 per pound, we were above 100, the low was below 18 reached in December 2016. Such volatility shakes markets, shakes producers and businesses because it's hard to plan which such volatility. However let's start with the bullish thesis. As you can see the price is subdued and bulls expect that the price cannot stay that low for longer and should return to previous highs definitely above 50 and perhaps even above 100 which should allow great returns for uranium investors. The bullish thesis is pretty simply by 2020 China will be adding a lot of electricity power production, Japan is restarting the reactors, France is maintaining its high share of nuclear energy and the near-term uncovered utility demand is 487 million pounds of uranium for the next seven years. That's three times yearly current consumption. So that's the bullish thesis. In addition a lot of companies have lowered their production, have cut their production. Here we have a summary production cuts of about 72 million pounds per year which is close to 50% of the general global annual production. That is huge. So everybody is cutting production because it's not sustainable to produce at these low prices. Further if you are a US uranium producer there is a quota that 25% of US nuclear market has to be sourced from US uranium miners. So that's something that could propel uranium miners in the US to significant gains. Further there is new constructions. There is 49 reactors that are being constructed which implies a 30% increase in the number of generators in use which is now 449. So a beautiful report comes from the world nuclear industry and they are showing that if their program called harmony that plans that 25% of the global needs for energy will be supplied by nuclear by 2050 we can expect huge growth in uranium demand through new generators being built. Something similar to what was going on in the 1980s when there was a lot of generator building. So again growing electricity demand based on Asia supply is not incentivized as low prices don't incentivize investments. Investments take a lot of time to develop so there is a lot of lead time which might push uranium prices much much higher. There are a lot of plans for new reactors worldwide. There are extending lifetime programs in the US and nuclear power capacity worldwide is increasing steadily. A lot of comparisons with the 1980s when 218 power reactors started up on average every 17 days with what's going on in China as they say it's not hard to imagine a similar rate of reactor constructions in the three years ahead. So that's the bullish thesis low prices not sustainable production a lot of time to bring new mines to production a lot of production cuts to bring the production cuts back to production it doesn't take a lot of time it takes very little and an average uranium price of 50 that should propel uranium investments uranium stocks etc. Let's discuss the bearish thesis in the next video