Three Things (September 14th)

Commentary8 days ago
"It’s when you’re not humble that you end up doing things that will make you humble." —Francois Rochon
1) Illinois senate to bailout Exelon nuclear plants, underscoring strong demand for uranium long-term
At least two nuclear plants in Illinois will be saved by the state’s $700M comprehensive energy bill, passed on Monday.
One of the plants, located in Byron, was scheduled to begin the defueling and shutdown process the day the bill was passed.
As our clients know well, at Titan we’re extremely bullish on nuclear energy and its feedstock, uranium.
Titan’s takeaway: Bolstered by strong bi-partisan support for nuclear in Congress for the first time in 48 years, we believe nuclear demand could grow steadily at 2-3% per year between 2021-2030. Uranium is a critical input to fulfilling this growing nuclear demand, which we believe will further benefit Titan holdings CCJ, DNN, and NXE.
2) Restaurant-tech start-up Toast eyes $16B IPO valuation, highlighting the increasing digitization of the restaurant industry
In early 2020, Toast raised funding at a $5B valuation, but the company--like its industry--has been transformed by the COVID-19 pandemic.
Before the pandemic, Toast focused on technology that enabled restaurants to combine payment systems, inventory management, and multi-location operations.
Despite laying off half its staff at the start of the pandemic, Toast was able to pivot its attention to helping restaurants with management of takeout orders, online orders, and gift cards.
Titan’s takeaway: The massive, highly fragmented restaurant industry has historically been slow to adopt new technologies, with one of the lowest levels of digitization across all sectors today. Toast’s IPO suggests to us that we are in the early stages of the industry’s transformation, which should allow restaurants to improve their omnichannel and operational experience through industry-specific software products.
3) Recorded music revenues up 27% in the first half of 2021, indicating continued adoption and growth of pay-to-stream services
The strongest contributor to the sector’s growth was paid subscriptions, which now comprise nearly two-thirds of total recorded music revenue.
The industry passed 80 million paid subscriptions for the first time.
The pandemic had a devastating effect on the music industry, as stores shuttered and tours were cancelled and indefinitely postponed.
Titan’s takeaway: The global music industry has transitioned from physical product sales to a streaming model over the last decade, and revenues have followed suit as streaming activity increased the size of the market. With the continued digitization of the music industry, we expect revenues to not only increase for music labels, but also for the millions of artists given the opportunity to stream their work on digital platforms.

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