1 00:00:05,160 --> 00:00:06,680 Speaker 1: This is what the Flux. 2 00:00:06,760 --> 00:00:09,240 Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty 3 00:00:09,240 --> 00:00:09,920 Speaker 2: first of February. 4 00:00:10,000 --> 00:00:10,480 Speaker 1: Juzzy boy. 5 00:00:10,520 --> 00:00:12,879 Speaker 3: When it comes to e commerce in Australia, get this. 6 00:00:13,119 --> 00:00:16,439 Speaker 3: The average online order value has dropped by twenty three 7 00:00:16,560 --> 00:00:19,079 Speaker 3: percent in just the last two years. That's according to 8 00:00:19,320 --> 00:00:22,400 Speaker 3: courier platform ship It. They've analyzed millions of orders and 9 00:00:22,440 --> 00:00:25,599 Speaker 3: they reckon a mix of economic pressures and intense global 10 00:00:25,640 --> 00:00:27,280 Speaker 3: competition is the blame. 11 00:00:27,440 --> 00:00:30,600 Speaker 2: The Shean's t moves. They're coming for Australian retailers. Sick 12 00:00:30,680 --> 00:00:33,240 Speaker 2: and fast, Flux Sam once again, it is Briday, which 13 00:00:33,280 --> 00:00:36,200 Speaker 2: means we're dishing out fifty dollars to the smartest person 14 00:00:36,280 --> 00:00:38,320 Speaker 2: in the Flux community. That's right. We're going to send 15 00:00:38,360 --> 00:00:41,040 Speaker 2: a random notification today and the first person to answer 16 00:00:41,159 --> 00:00:44,160 Speaker 2: three business or finance questions correctly as the fastest win 17 00:00:44,240 --> 00:00:46,000 Speaker 2: fifty bucks to get off the weekend. To make sure 18 00:00:46,040 --> 00:00:48,400 Speaker 2: to turn on your notifications, download the Flux app and 19 00:00:48,440 --> 00:00:49,720 Speaker 2: be ready to win. 20 00:00:49,720 --> 00:00:52,760 Speaker 1: Three prepared stories today. Juzzy boy, Let's do it for 21 00:00:52,960 --> 00:00:53,560 Speaker 1: our first. 22 00:00:53,680 --> 00:00:56,520 Speaker 3: Telstra has dialed up a net profit of just over 23 00:00:56,640 --> 00:00:59,560 Speaker 3: one billion dollars for the last six months after seeing 24 00:00:59,560 --> 00:01:03,520 Speaker 3: growth in it it's mobile business and saying goodbye to Foxtael, 25 00:01:03,680 --> 00:01:04,000 Speaker 3: not to. 26 00:01:03,960 --> 00:01:06,039 Speaker 2: Mention a heap of cost cutting Beman, but. 27 00:01:06,080 --> 00:01:06,880 Speaker 1: Do go on well. 28 00:01:06,959 --> 00:01:10,000 Speaker 3: Telster is Australia's biggest telco and one of the most 29 00:01:10,000 --> 00:01:12,000 Speaker 3: recognizable brands in the entire nation. 30 00:01:12,160 --> 00:01:16,240 Speaker 2: It provides retail services to over twenty two million Australian customers. 31 00:01:16,319 --> 00:01:18,679 Speaker 3: But Juzzy Boy. Over the past few years, Telstra has 32 00:01:18,680 --> 00:01:19,920 Speaker 3: been making some changes. 33 00:01:20,240 --> 00:01:22,279 Speaker 2: In fact, be Man. As part of its T twenty 34 00:01:22,280 --> 00:01:25,680 Speaker 2: five strategy, it cut nine percent of its workforce. 35 00:01:25,360 --> 00:01:27,840 Speaker 1: And it seemed to work so far for the big 36 00:01:27,880 --> 00:01:28,440 Speaker 1: T Yeah. 37 00:01:28,480 --> 00:01:31,080 Speaker 2: Its revenues managed to grow one and a half percent 38 00:01:31,200 --> 00:01:33,360 Speaker 2: over the last six months to eleven and a half 39 00:01:33,600 --> 00:01:34,920 Speaker 2: billion dollars and. 40 00:01:34,880 --> 00:01:36,840 Speaker 3: As net profit jumped six and a half percent to 41 00:01:37,040 --> 00:01:39,440 Speaker 3: one point three bill not to mention. 42 00:01:39,360 --> 00:01:42,240 Speaker 2: The sale of Foxtel and its VC during this period. 43 00:01:42,360 --> 00:01:45,160 Speaker 3: Now, apart from these one off zingers, Heelster praised its 44 00:01:45,240 --> 00:01:48,240 Speaker 3: consumer division as the MVP and be man. 45 00:01:48,280 --> 00:01:50,800 Speaker 2: With the T twenty five turnaround on track, Heelster will 46 00:01:50,800 --> 00:01:54,240 Speaker 2: buy back seven hundred and fifty million dollars worth of shares. 47 00:01:53,920 --> 00:01:56,760 Speaker 3: And it has jacked up its dividend by more than 48 00:01:56,800 --> 00:01:57,360 Speaker 3: five percent. 49 00:01:57,480 --> 00:02:00,280 Speaker 2: In other words, investors are getting a little dividends week 50 00:02:00,480 --> 00:02:01,360 Speaker 2: for sticking around. 51 00:02:01,480 --> 00:02:02,880 Speaker 1: So what is the key learning here? 52 00:02:03,000 --> 00:02:06,160 Speaker 2: Investors ten dislot companies into three big categories. You've got 53 00:02:06,160 --> 00:02:08,120 Speaker 2: the growth, You've got the income, or you've got the 54 00:02:08,240 --> 00:02:11,919 Speaker 2: value company, a little bit like choosing a mobile plan exactly. 55 00:02:11,960 --> 00:02:13,840 Speaker 2: On the one hand, you've got growth companies. These are 56 00:02:13,880 --> 00:02:16,160 Speaker 2: the companies that are expect to grow faster than the 57 00:02:16,200 --> 00:02:17,040 Speaker 2: market average. 58 00:02:17,080 --> 00:02:20,120 Speaker 3: They're the ones reinvesting every darn dollar back into the 59 00:02:20,160 --> 00:02:22,000 Speaker 3: business instead of paying out dividend. 60 00:02:22,080 --> 00:02:25,040 Speaker 2: Think Meta, who paid its first dividend in twenty twenty four, 61 00:02:25,160 --> 00:02:26,799 Speaker 2: twelve years after going public. 62 00:02:26,880 --> 00:02:28,760 Speaker 1: And on the other hand, you've got income stocks. 63 00:02:28,800 --> 00:02:30,680 Speaker 2: These are the ones like Telstra that pay out a 64 00:02:30,760 --> 00:02:33,440 Speaker 2: portion of their profits to shareholders on the regular. 65 00:02:33,120 --> 00:02:33,760 Speaker 1: And jaz boid. 66 00:02:33,760 --> 00:02:37,320 Speaker 3: These income stocks typically attract investors who are keen on 67 00:02:37,480 --> 00:02:39,000 Speaker 3: regular dividend. 68 00:02:38,600 --> 00:02:40,120 Speaker 2: Payouts think retirees. 69 00:02:40,200 --> 00:02:43,400 Speaker 1: For example, Telstra's share price has only increased just over 70 00:02:43,480 --> 00:02:46,919 Speaker 1: four percent over the past five years before yesterday's update. 71 00:02:46,720 --> 00:02:49,520 Speaker 2: But be manufacturing all those dividend payouts, and shareholders have 72 00:02:49,520 --> 00:02:52,160 Speaker 2: pocketed nearly a dollar per share in cash over that 73 00:02:52,240 --> 00:02:53,360 Speaker 2: same five year period. 74 00:02:53,440 --> 00:02:55,760 Speaker 3: And of course you've got the value investors, the ones 75 00:02:55,760 --> 00:02:59,040 Speaker 3: who look to invest in undervalued companies based on their 76 00:02:59,120 --> 00:03:00,440 Speaker 3: financials be man. 77 00:03:00,480 --> 00:03:03,800 Speaker 2: With Telstra's latest result, it's giving income focused investors even 78 00:03:03,880 --> 00:03:05,880 Speaker 2: more reasons to stay on the dial for. 79 00:03:06,000 --> 00:03:09,040 Speaker 3: Our second story of West Farmers has seen its sales 80 00:03:09,160 --> 00:03:11,880 Speaker 3: and earnings jump in the first half of the financial 81 00:03:11,960 --> 00:03:15,359 Speaker 3: year thanks to its goat performers Bunnings and Kmart. 82 00:03:15,560 --> 00:03:18,000 Speaker 2: Bunnings and Kmart are the gifts that keep on giving 83 00:03:18,000 --> 00:03:19,760 Speaker 2: for wezi Is, So tell me what well. 84 00:03:19,800 --> 00:03:22,360 Speaker 3: West Farmers is the WA based owner of some of 85 00:03:22,400 --> 00:03:24,680 Speaker 3: the biggest named brands in Australian retail. 86 00:03:24,800 --> 00:03:26,640 Speaker 2: As mentioned, they owned Bunnings and Kmart. 87 00:03:26,639 --> 00:03:29,120 Speaker 3: They've also got their b grader as Juzzy Boy, your targets, 88 00:03:29,200 --> 00:03:31,720 Speaker 3: your price lines, your silk laser clinics, and they've also 89 00:03:31,760 --> 00:03:33,799 Speaker 3: got office works, which i'd say is an a grader and. 90 00:03:33,800 --> 00:03:36,600 Speaker 2: Formerly they owned Catch as well, which they announced plants 91 00:03:36,600 --> 00:03:37,520 Speaker 2: to shut down last. 92 00:03:37,320 --> 00:03:38,119 Speaker 1: Month the Juzzy Boy. 93 00:03:38,120 --> 00:03:41,640 Speaker 3: It also owns industrial and safety businesses as well as 94 00:03:41,720 --> 00:03:44,720 Speaker 3: chemicals and energy and fertilizer businesses. 95 00:03:44,280 --> 00:03:45,720 Speaker 2: Your Clean Heats, your Blackwards. 96 00:03:45,840 --> 00:03:48,960 Speaker 3: West Farmers has announced its sales for the last half 97 00:03:49,120 --> 00:03:51,680 Speaker 3: jumped by three point six percent to over twenty three 98 00:03:51,720 --> 00:03:53,120 Speaker 3: and a half billion dollars, and off. 99 00:03:53,040 --> 00:03:55,040 Speaker 2: The back of these sales it delivered a tasting their 100 00:03:55,080 --> 00:03:58,640 Speaker 2: profit of just done that one and a half billion baccarinis. 101 00:03:58,160 --> 00:04:00,640 Speaker 3: Enough to buy every single kmart dupe and still have 102 00:04:00,800 --> 00:04:03,280 Speaker 3: change left over for a Bunning snag or three and 103 00:04:03,320 --> 00:04:03,800 Speaker 3: be Man. 104 00:04:03,720 --> 00:04:06,160 Speaker 2: West Farmer's reckons. A key part of this success is 105 00:04:06,200 --> 00:04:08,560 Speaker 2: its pricing strategy of every day low. 106 00:04:08,400 --> 00:04:10,840 Speaker 1: Prices fascinating stuff. So what is the key learning here? 107 00:04:10,920 --> 00:04:14,080 Speaker 2: Consistency builds trust while discounts create urgency. 108 00:04:14,240 --> 00:04:17,600 Speaker 3: You see Bunnings and came up primarily user pricing strategy 109 00:04:17,640 --> 00:04:19,360 Speaker 3: called everyday low prices. 110 00:04:19,440 --> 00:04:23,599 Speaker 2: The idea is they consistently offer products at the lowest prices. 111 00:04:23,320 --> 00:04:26,200 Speaker 3: And it means they don't rely on frequent promotions or 112 00:04:26,240 --> 00:04:27,080 Speaker 3: discounts be Man. 113 00:04:27,160 --> 00:04:29,680 Speaker 2: This is in contrast to the other pricing strategy, which 114 00:04:29,720 --> 00:04:31,159 Speaker 2: is called high low pricing. 115 00:04:31,320 --> 00:04:33,760 Speaker 3: This one is when companies set higher prices but offer 116 00:04:33,839 --> 00:04:35,479 Speaker 3: discounts and promotions. 117 00:04:35,040 --> 00:04:38,080 Speaker 2: And b Man. Historically, more than forty percent of groceries 118 00:04:38,120 --> 00:04:41,320 Speaker 2: in supermarkets are purchased on special or promotion each week. 119 00:04:41,440 --> 00:04:42,520 Speaker 2: According to Nilson, and. 120 00:04:42,440 --> 00:04:45,200 Speaker 3: While high low pricing attracts deal hunters. It also means 121 00:04:45,200 --> 00:04:46,880 Speaker 3: shoppers aren't particularly loyal. 122 00:04:47,000 --> 00:04:49,400 Speaker 2: Yeah, they will happily ditch coals for woolies if butter 123 00:04:49,560 --> 00:04:50,640 Speaker 2: is fifty percent cheaper. 124 00:04:50,800 --> 00:04:53,479 Speaker 3: And based on these numbers, it's safe to say West 125 00:04:53,480 --> 00:04:56,520 Speaker 3: Farmers has mastered the art of keeping OSSI's spending. 126 00:04:57,120 --> 00:05:01,480 Speaker 2: For our third and final story, Nicola, the electric trucking startup, 127 00:05:01,560 --> 00:05:04,400 Speaker 2: has filed for bankruptcy in the US after struggling to 128 00:05:04,480 --> 00:05:06,360 Speaker 2: raise money or find a buyer. 129 00:05:06,520 --> 00:05:09,080 Speaker 3: The old Tesla of trucks has run out of charge. 130 00:05:09,160 --> 00:05:10,160 Speaker 3: Tell me what's going on here? 131 00:05:10,160 --> 00:05:12,760 Speaker 2: Okay? So Nicola launched back in twenty fourteen with big 132 00:05:12,920 --> 00:05:17,920 Speaker 2: bold plans to revolutionize trucking with hydrogen electric batteries and point. 133 00:05:18,080 --> 00:05:21,960 Speaker 3: Nicola went public via a spack a blank check company 134 00:05:22,080 --> 00:05:24,840 Speaker 3: that was valued at thirty billion dollars US, and that 135 00:05:24,880 --> 00:05:25,880 Speaker 3: was in June twenty twenty. 136 00:05:26,040 --> 00:05:31,320 Speaker 2: Man name more iconic duo than spacks and overinflated valuations. 137 00:05:30,720 --> 00:05:31,400 Speaker 1: But Jazzy boy. 138 00:05:31,520 --> 00:05:34,200 Speaker 3: Now Nicola has announced it will file for bankruptcy after 139 00:05:34,240 --> 00:05:36,960 Speaker 3: it could not raise money or find a new buyer. 140 00:05:36,680 --> 00:05:39,240 Speaker 2: And be man. It isn't that surprising because Nicola has 141 00:05:39,240 --> 00:05:41,120 Speaker 2: been facing scandals for years. 142 00:05:41,200 --> 00:05:44,080 Speaker 3: Well, it has been accused of making exaggerated claims about 143 00:05:44,120 --> 00:05:44,880 Speaker 3: its technology. 144 00:05:44,960 --> 00:05:47,400 Speaker 2: Yep, they claimed they built the truck from the. 145 00:05:47,120 --> 00:05:49,680 Speaker 3: Grounder, but it was uncovered that they actually bought the 146 00:05:49,680 --> 00:05:50,920 Speaker 3: batteries from another company. 147 00:05:50,960 --> 00:05:53,080 Speaker 2: What about when they released a marketing video showing their 148 00:05:53,120 --> 00:05:54,240 Speaker 2: truck driving. 149 00:05:53,920 --> 00:05:56,320 Speaker 1: But in reality the truck was just rolling down a hill. 150 00:05:56,400 --> 00:05:58,920 Speaker 2: But be man now, Nichola says it couldn't even scrape 151 00:05:58,960 --> 00:06:02,000 Speaker 2: together enough cash to keep the hydrogen engines pairing. 152 00:06:02,120 --> 00:06:05,000 Speaker 3: And this is all part of the natural evolution of 153 00:06:05,080 --> 00:06:06,120 Speaker 3: a new industry. 154 00:06:06,200 --> 00:06:07,520 Speaker 2: So what is the key learning here? 155 00:06:07,680 --> 00:06:09,120 Speaker 1: When a shiny new. 156 00:06:08,920 --> 00:06:12,200 Speaker 3: Industry takes off, it often attracts a flood of startups, 157 00:06:12,200 --> 00:06:14,240 Speaker 3: all elbowing each other to become the next big thing. 158 00:06:14,320 --> 00:06:17,800 Speaker 2: But den b man. As the industry matures and competition intensifies, 159 00:06:17,920 --> 00:06:19,960 Speaker 2: funding becomes harder to secure and. 160 00:06:19,880 --> 00:06:21,800 Speaker 1: A weaker players struggle to survive, and. 161 00:06:21,760 --> 00:06:25,200 Speaker 2: This leads to consolidation where only the strongest companies remain standing. 162 00:06:25,360 --> 00:06:28,000 Speaker 3: And this is what we're seeing in the electric vehicle 163 00:06:28,040 --> 00:06:31,640 Speaker 3: market right now. And startup ev companies like Fiska, Canoe, 164 00:06:31,800 --> 00:06:36,000 Speaker 3: Weltmeister all household names. Jazzy Boy, they've all declared bankruptcy 165 00:06:36,000 --> 00:06:37,200 Speaker 3: over the past few years. 166 00:06:36,960 --> 00:06:40,160 Speaker 2: After raising and burning billions of dollars. 167 00:06:39,800 --> 00:06:43,359 Speaker 3: Of cash, and now Nikola joins the pack. Slash the 168 00:06:43,440 --> 00:06:44,279 Speaker 3: scrap heap. 169 00:06:44,160 --> 00:06:46,480 Speaker 2: Fox down, get on your phone, turn it off silent 170 00:06:46,640 --> 00:06:48,400 Speaker 2: so you can be the first person to answer our 171 00:06:48,480 --> 00:06:51,240 Speaker 2: three questions, and we've beducks this week. It's the perfect 172 00:06:51,320 --> 00:06:53,440 Speaker 2: way to test your knowledge and also come away with 173 00:06:53,480 --> 00:06:53,919 Speaker 2: some cash. 174 00:06:53,960 --> 00:06:57,119 Speaker 3: Thanks for listening and we'll see you on Monday.