Speaker 1: This is what the flux. I'm brad, I'm justin and
Speaker 1: it's Friday, the fifth of July.
Speaker 2: If your super is with aware Super Australian Retirement Trust
Speaker 2: or even AMP, then you are entitled to a big
Speaker 2: grin on your face this Friday. These super funds delivered
Speaker 2: returns over eleven percent in the last financial year. That's
Speaker 2: according to super ratings. Compare that to the median balance
Speaker 2: super fund return of eight point eight percent.
Speaker 1: Didn't expect those three p man. Speaking of big grins, though,
Speaker 1: we want to give another Flex down member a reason
Speaker 1: to grin from eat with our weekly quiz Quick Sticks
Speaker 1: and today we're mixing it up at all, giving eight
Speaker 1: one hundred dollars. But there are five questions to answer,
Speaker 1: so make sure to download the Fox app, turn on
Speaker 1: your notifications and be the first to answer them all correctly.
Speaker 1: Be your chance to win three.
Speaker 2: Smiley stories today Juzzy Boy for our first book, Topia
Speaker 2: has gone into voluntary administration after a battle to cope
Speaker 2: with its financial struggles.
Speaker 1: The plot is sticking here, be man, so what is
Speaker 1: going on? Well, Dozy Boy.
Speaker 2: Book Topia is Australia's largest online bookstore, founded in two
Speaker 2: thousand and four and listed on the ASX in December
Speaker 2: twenty twenty.
Speaker 1: It also owns the bookstore chain Angus and Robertson Ah
Speaker 1: that old chestnut now be Man. Book Toopia has been
Speaker 1: doing it pretty rough lately. It's cut ninety jobs in
Speaker 1: the past eighteen months to save on.
Speaker 2: Costs, and in its most recent half year earnings update,
Speaker 2: book Topia announced sixteen point seven million dollars in losses and.
Speaker 1: A twenty two percent drop in revenue for the half year.
Speaker 1: Now Dazi boy.
Speaker 2: Roughly two weeks ago, book Topia entered a shared trading
Speaker 2: halt to try and sort out its financial situation, but now.
Speaker 1: Book Tobia's struggled to secure additional funding to stay afloat,
Speaker 1: and it's gone into voluntary administration.
Speaker 2: Topia reckons it's the poor economic conditions and reduced consumer
Speaker 2: spending that has led to all of this.
Speaker 1: But be Man will book Topia's morning. It's crumbling business.
Speaker 1: There's someone in the shadows eyeing it's left over. Who
Speaker 1: I'm interested? What is the key learning here? A company
Speaker 1: may go under, but its pieces can still hold value.
Speaker 2: Book Toopia might not be in a position to operate anymore,
Speaker 2: but its assets could still be useful and valuable to
Speaker 2: someone else.
Speaker 1: In fact, as book Toopia has gone into administration, Dimmicks
Speaker 1: has been watching on from the sideline.
Speaker 2: And it's been considering purchasing some of Booktopia's assets, especially
Speaker 2: its fulfillment and distribution centers and be man. Given the
Speaker 2: two operate in the same industry selling books, it's not
Speaker 2: hard for Dimicks to poach book Toopia's assets and use
Speaker 2: them to grow its own business. And jiboy, We've seen
Speaker 2: this before with Dick Smith.
Speaker 1: Yep, Dick Smith couldn't survive, but it's intellectual property and
Speaker 1: its online businesses with valuable assets to the company that
Speaker 1: acquired it Coging So jaziboy.
Speaker 2: While this may be the end of the road for Booktopia,
Speaker 2: the systems and the products that built could find a
Speaker 2: new life with a new owner. For our second story,
Speaker 2: Domino's Pizza is expecting its twenty twenty four profit estimates
Speaker 2: to be seriously hurt thanks to the inflation of one
Speaker 2: of its most valuable ingredients. Don't even think about skipping
Speaker 2: out on the cheese, Dominoes.
Speaker 1: What the mozzarella is going on here? Okay, so we
Speaker 1: know Domino's Pizza the asxisted company. It's had a wild
Speaker 1: ride over the past few years, yep.
Speaker 2: But share price has jumped all the way to one
Speaker 2: hundred and fifty nine dollars during peak pandemic, and it's
Speaker 2: come back down to earth to thirty five dollars.
Speaker 1: A boy, now does you? Boy?
Speaker 2: You obviously know that domino serves all sorts of delicious
Speaker 2: cheesy pizzas and delicious cheesy melts like.
Speaker 1: The barbecue meat Lovers, the Mega meat Lovers, the Lost
Speaker 1: and of course the double bacon cheeseburgerizza.
Speaker 2: Now, I don't want to name every ingredient in these pizzas,
Speaker 2: but I can tell you one thing, my friend, they
Speaker 2: all have a heck of a lot of cheese in them.
Speaker 1: And now, be Man, Dominoes is facing a new challenge
Speaker 1: because the price of cheese is up nearly forty percent
Speaker 1: since the end.
Speaker 2: Of March, and as a result, investors and analysts are
Speaker 2: expecting Domino's profit to be flatter.
Speaker 1: Then they're colluten free bases, and I know them well.
Speaker 1: In fact, be Man, Domino's basket of commodity inputs is
Speaker 1: now back at the highest level since November twenty twenty two,
Speaker 1: according to Baron.
Speaker 2: Joey, and with consumers also cutting back on spending. This
Speaker 2: is not a combo that leads to cheese tasting pizzas.
Speaker 1: So what is the key learning here?
Speaker 2: Commodity prices is one of the major sources of business
Speaker 2: risk that can up end hospitality company.
Speaker 1: Get this, Food costs on average account the thirty three
Speaker 1: percent of restaurants in higher revenue.
Speaker 2: So jesboy, When a company experiences price inflation on essential
Speaker 2: commodities like cheese, it can majorly impact their costs and
Speaker 2: profit margins.
Speaker 1: And be man, I hear what you're saying. Why don't
Speaker 1: they just increase their pizza prices? Not sure, I said that,
Speaker 1: Jasey boy. But go on, well, there's a limit to
Speaker 1: how much consumers are willing to pay before sales volume
Speaker 1: starts to decline. And that's exactly what happened last year.
Speaker 2: They increased their prices and profits dropped by more than
Speaker 2: twenty percent.
Speaker 1: So be man. Dominos finds itself between a crust and
Speaker 1: a hard place because cheese is the core topping to
Speaker 1: any good pizza.
Speaker 2: For our third and final story, Tesla's investors shut up
Speaker 2: its shares by ten percent after its sales fell by
Speaker 2: less than expected last quarter and it pulled an energy
Speaker 2: rabbit out of the hat.
Speaker 1: Muski the magician always, sometimes often or sometimes always has
Speaker 1: strange things up your sleeve. So what's going on here? Well, Jaseyboy.
Speaker 2: Tesla's shot onto the electric vehicle scene back in two
Speaker 2: thousand and eight with its first car, the roadstre and since.
Speaker 1: Then electric vehicle race has heated up faster than an
Speaker 1: ice cube melting on a hot sidewalk.
Speaker 2: We've got Tesla, but also byd Volkswagen General Motors. Have
Speaker 2: you heard of still Ant's Uzzy Boy, and pretty much
Speaker 2: every other brand trying their hand here and be man.
Speaker 1: That's meant Tesla has been forced to drop its car
Speaker 1: prices three separate times in April and May this year,
Speaker 1: just to clear a backlog of their stock. Surely you
Speaker 1: just do one big cut, I know, but be man.
Speaker 1: Even so, Tesla has still seen its sales decline in
Speaker 1: the most recent quarter by four point eight percent, which
Speaker 1: is still less than the eight point five percent fall
Speaker 1: in the first quarter and actually less than investors expected.
Speaker 1: But b man. Tesla's saying, hey, did you know what
Speaker 1: energy storage business for power batteries is booming, and we
Speaker 1: have an autonomous Robotaxi coming out soon, and we have
Speaker 1: a robot coming called Optimists, and we're spending ten billion
Speaker 1: US dollars on AI research this year. Why not next minute?
Speaker 1: Tesla's share price is up ten percent off the back
Speaker 1: of this new potential. Ah huh, So what is the
Speaker 1: key learning here? With emerging technologies, valuations can seem sky high,
Speaker 1: but there's often a reason behind the high.
Speaker 2: You see, juzzy boy investors often pay a premium for
Speaker 2: the potential of future profits rather than current performance.
Speaker 1: For example, Gouz Minigomez's current price to earnings ratio PE
Speaker 1: ratio is over five hundred because of its big promises
Speaker 1: for the future.
Speaker 2: Now, back in twenty twenty, Tesla's PE ratio was over
Speaker 2: eleven hundred.
Speaker 1: That is real high.
Speaker 2: But since then it's PE ratio dropped to under thirty
Speaker 2: five because Tesla's electric vehicles aren't that unique or appealing anymore.
Speaker 1: But now its ventures into AI and energy storage present
Speaker 1: new opportunities that could redefine the.
Speaker 2: Sector, and the anticipation of growth in these sectors is
Speaker 2: a reason why Tesla investors boosted its share price.
Speaker 1: By ten percent. Fox Am, there is no better way
Speaker 1: to start the weekend that our one hundred bucks cash
Speaker 1: into your bank account, and we're doing it this week
Speaker 1: in our weekly quiz Quick sticks to make sure to
Speaker 1: download the Flux app, turn your notifications on, and use
Speaker 1: your fast fingers. Thanks for listening, and we'll see you
Speaker 1: on Monday