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Speaker 1: This is what the flux. I'm brad, I'm justin and

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Speaker 1: it's Friday, the fifth of July.

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Speaker 2: If your super is with aware Super Australian Retirement Trust

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Speaker 2: or even AMP, then you are entitled to a big

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Speaker 2: grin on your face this Friday. These super funds delivered

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Speaker 2: returns over eleven percent in the last financial year. That's

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Speaker 2: according to super ratings. Compare that to the median balance

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Speaker 2: super fund return of eight point eight percent.

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Speaker 1: Didn't expect those three p man. Speaking of big grins, though,

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Speaker 1: we want to give another Flex down member a reason

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Speaker 1: to grin from eat with our weekly quiz Quick Sticks

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Speaker 1: and today we're mixing it up at all, giving eight

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Speaker 1: one hundred dollars. But there are five questions to answer,

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Speaker 1: so make sure to download the Fox app, turn on

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Speaker 1: your notifications and be the first to answer them all correctly.

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Speaker 1: Be your chance to win three.

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Speaker 2: Smiley stories today Juzzy Boy for our first book, Topia

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Speaker 2: has gone into voluntary administration after a battle to cope

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Speaker 2: with its financial struggles.

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Speaker 1: The plot is sticking here, be man, so what is

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Speaker 1: going on? Well, Dozy Boy.

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Speaker 2: Book Topia is Australia's largest online bookstore, founded in two

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Speaker 2: thousand and four and listed on the ASX in December

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Speaker 2: twenty twenty.

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Speaker 1: It also owns the bookstore chain Angus and Robertson Ah

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Speaker 1: that old chestnut now be Man. Book Toopia has been

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Speaker 1: doing it pretty rough lately. It's cut ninety jobs in

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Speaker 1: the past eighteen months to save on.

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Speaker 2: Costs, and in its most recent half year earnings update,

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Speaker 2: book Topia announced sixteen point seven million dollars in losses and.

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Speaker 1: A twenty two percent drop in revenue for the half year.

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Speaker 1: Now Dazi boy.

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Speaker 2: Roughly two weeks ago, book Topia entered a shared trading

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Speaker 2: halt to try and sort out its financial situation, but now.

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Speaker 1: Book Tobia's struggled to secure additional funding to stay afloat,

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Speaker 1: and it's gone into voluntary administration.

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Speaker 2: Topia reckons it's the poor economic conditions and reduced consumer

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Speaker 2: spending that has led to all of this.

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Speaker 1: But be Man will book Topia's morning. It's crumbling business.

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Speaker 1: There's someone in the shadows eyeing it's left over. Who

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Speaker 1: I'm interested? What is the key learning here? A company

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Speaker 1: may go under, but its pieces can still hold value.

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Speaker 2: Book Toopia might not be in a position to operate anymore,

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Speaker 2: but its assets could still be useful and valuable to

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Speaker 2: someone else.

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Speaker 1: In fact, as book Toopia has gone into administration, Dimmicks

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Speaker 1: has been watching on from the sideline.

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Speaker 2: And it's been considering purchasing some of Booktopia's assets, especially

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Speaker 2: its fulfillment and distribution centers and be man. Given the

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Speaker 2: two operate in the same industry selling books, it's not

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Speaker 2: hard for Dimicks to poach book Toopia's assets and use

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Speaker 2: them to grow its own business. And jiboy, We've seen

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Speaker 2: this before with Dick Smith.

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Speaker 1: Yep, Dick Smith couldn't survive, but it's intellectual property and

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Speaker 1: its online businesses with valuable assets to the company that

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Speaker 1: acquired it Coging So jaziboy.

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Speaker 2: While this may be the end of the road for Booktopia,

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Speaker 2: the systems and the products that built could find a

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Speaker 2: new life with a new owner. For our second story,

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Speaker 2: Domino's Pizza is expecting its twenty twenty four profit estimates

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Speaker 2: to be seriously hurt thanks to the inflation of one

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Speaker 2: of its most valuable ingredients. Don't even think about skipping

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Speaker 2: out on the cheese, Dominoes.

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Speaker 1: What the mozzarella is going on here? Okay, so we

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Speaker 1: know Domino's Pizza the asxisted company. It's had a wild

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Speaker 1: ride over the past few years, yep.

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Speaker 2: But share price has jumped all the way to one

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Speaker 2: hundred and fifty nine dollars during peak pandemic, and it's

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Speaker 2: come back down to earth to thirty five dollars.

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Speaker 1: A boy, now does you? Boy?

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Speaker 2: You obviously know that domino serves all sorts of delicious

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Speaker 2: cheesy pizzas and delicious cheesy melts like.

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Speaker 1: The barbecue meat Lovers, the Mega meat Lovers, the Lost

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Speaker 1: and of course the double bacon cheeseburgerizza.

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Speaker 2: Now, I don't want to name every ingredient in these pizzas,

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Speaker 2: but I can tell you one thing, my friend, they

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Speaker 2: all have a heck of a lot of cheese in them.

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Speaker 1: And now, be Man, Dominoes is facing a new challenge

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Speaker 1: because the price of cheese is up nearly forty percent

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Speaker 1: since the end.

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Speaker 2: Of March, and as a result, investors and analysts are

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Speaker 2: expecting Domino's profit to be flatter.

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Speaker 1: Then they're colluten free bases, and I know them well.

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Speaker 1: In fact, be Man, Domino's basket of commodity inputs is

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Speaker 1: now back at the highest level since November twenty twenty two,

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Speaker 1: according to Baron.

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Speaker 2: Joey, and with consumers also cutting back on spending. This

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Speaker 2: is not a combo that leads to cheese tasting pizzas.

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Speaker 1: So what is the key learning here?

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Speaker 2: Commodity prices is one of the major sources of business

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Speaker 2: risk that can up end hospitality company.

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Speaker 1: Get this, Food costs on average account the thirty three

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Speaker 1: percent of restaurants in higher revenue.

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Speaker 2: So jesboy, When a company experiences price inflation on essential

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Speaker 2: commodities like cheese, it can majorly impact their costs and

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Speaker 2: profit margins.

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Speaker 1: And be man, I hear what you're saying. Why don't

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Speaker 1: they just increase their pizza prices? Not sure, I said that,

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Speaker 1: Jasey boy. But go on, well, there's a limit to

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Speaker 1: how much consumers are willing to pay before sales volume

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Speaker 1: starts to decline. And that's exactly what happened last year.

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Speaker 2: They increased their prices and profits dropped by more than

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Speaker 2: twenty percent.

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Speaker 1: So be man. Dominos finds itself between a crust and

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Speaker 1: a hard place because cheese is the core topping to

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Speaker 1: any good pizza.

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Speaker 2: For our third and final story, Tesla's investors shut up

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Speaker 2: its shares by ten percent after its sales fell by

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Speaker 2: less than expected last quarter and it pulled an energy

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Speaker 2: rabbit out of the hat.

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Speaker 1: Muski the magician always, sometimes often or sometimes always has

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Speaker 1: strange things up your sleeve. So what's going on here? Well, Jaseyboy.

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Speaker 2: Tesla's shot onto the electric vehicle scene back in two

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Speaker 2: thousand and eight with its first car, the roadstre and since.

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Speaker 1: Then electric vehicle race has heated up faster than an

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Speaker 1: ice cube melting on a hot sidewalk.

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Speaker 2: We've got Tesla, but also byd Volkswagen General Motors. Have

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Speaker 2: you heard of still Ant's Uzzy Boy, and pretty much

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Speaker 2: every other brand trying their hand here and be man.

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Speaker 1: That's meant Tesla has been forced to drop its car

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Speaker 1: prices three separate times in April and May this year,

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Speaker 1: just to clear a backlog of their stock. Surely you

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Speaker 1: just do one big cut, I know, but be man.

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Speaker 1: Even so, Tesla has still seen its sales decline in

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Speaker 1: the most recent quarter by four point eight percent, which

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Speaker 1: is still less than the eight point five percent fall

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Speaker 1: in the first quarter and actually less than investors expected.

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Speaker 1: But b man. Tesla's saying, hey, did you know what

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Speaker 1: energy storage business for power batteries is booming, and we

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Speaker 1: have an autonomous Robotaxi coming out soon, and we have

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Speaker 1: a robot coming called Optimists, and we're spending ten billion

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Speaker 1: US dollars on AI research this year. Why not next minute?

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Speaker 1: Tesla's share price is up ten percent off the back

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Speaker 1: of this new potential. Ah huh, So what is the

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Speaker 1: key learning here? With emerging technologies, valuations can seem sky high,

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Speaker 1: but there's often a reason behind the high.

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Speaker 2: You see, juzzy boy investors often pay a premium for

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Speaker 2: the potential of future profits rather than current performance.

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Speaker 1: For example, Gouz Minigomez's current price to earnings ratio PE

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Speaker 1: ratio is over five hundred because of its big promises

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Speaker 1: for the future.

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Speaker 2: Now, back in twenty twenty, Tesla's PE ratio was over

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Speaker 2: eleven hundred.

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Speaker 1: That is real high.

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Speaker 2: But since then it's PE ratio dropped to under thirty

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Speaker 2: five because Tesla's electric vehicles aren't that unique or appealing anymore.

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Speaker 1: But now its ventures into AI and energy storage present

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Speaker 1: new opportunities that could redefine the.

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Speaker 2: Sector, and the anticipation of growth in these sectors is

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Speaker 2: a reason why Tesla investors boosted its share price.

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Speaker 1: By ten percent. Fox Am, there is no better way

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Speaker 1: to start the weekend that our one hundred bucks cash

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Speaker 1: into your bank account, and we're doing it this week

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Speaker 1: in our weekly quiz Quick sticks to make sure to

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Speaker 1: download the Flux app, turn your notifications on, and use

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Speaker 1: your fast fingers. Thanks for listening, and we'll see you

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Speaker 1: on Monday