1 00:00:05,120 --> 00:00:06,480 Speaker 1: This is what the Flux. 2 00:00:06,519 --> 00:00:08,879 Speaker 2: I'm Brett and I'm Justin and it's Briday. There's sixth 3 00:00:08,920 --> 00:00:09,280 Speaker 2: of June. 4 00:00:09,320 --> 00:00:11,880 Speaker 1: The ASX has had its first company to hit a 5 00:00:11,880 --> 00:00:15,760 Speaker 1: three hundred billion dollar valuation momentarily. Combank shares jump three 6 00:00:15,760 --> 00:00:17,919 Speaker 1: and a half percent over the past week, which tipped 7 00:00:17,960 --> 00:00:19,919 Speaker 1: it over the mark for a very hot minute, Juzzy boy, 8 00:00:19,920 --> 00:00:22,280 Speaker 1: and that means Combank is now nearly worth more than 9 00:00:22,280 --> 00:00:26,560 Speaker 1: A and Z and Westpac and NAB combine washing the. 10 00:00:26,520 --> 00:00:29,840 Speaker 2: Competition the man. We all know that ETFs are very 11 00:00:29,960 --> 00:00:33,440 Speaker 2: very hot right now, fourteen trillion dollars worth of ets globally. 12 00:00:33,800 --> 00:00:36,080 Speaker 2: That's why we're so excited with this month's Academy, which 13 00:00:36,120 --> 00:00:39,200 Speaker 2: goes through everything you need to know about investing in ets, 14 00:00:39,240 --> 00:00:42,240 Speaker 2: what to look out for, buying and selling ETFs, even 15 00:00:42,280 --> 00:00:44,360 Speaker 2: the different types of ETFs to get into. So if 16 00:00:44,360 --> 00:00:46,080 Speaker 2: you want to learn more about ETFs and have the 17 00:00:46,159 --> 00:00:48,519 Speaker 2: chance to win cash prizes, make sure to download the 18 00:00:48,520 --> 00:00:50,480 Speaker 2: Flux app and check out the Academy this month. 19 00:00:50,600 --> 00:00:54,360 Speaker 1: Three riveting stories today, jus boy, let's do it for 20 00:00:54,400 --> 00:00:58,160 Speaker 1: our first mecha. The Australian retailer has officially joined the 21 00:00:58,200 --> 00:01:01,440 Speaker 1: billion dollar club after clocking one point two billion dollars 22 00:01:01,480 --> 00:01:02,240 Speaker 1: in sales. 23 00:01:02,400 --> 00:01:05,600 Speaker 2: Self care really sells, b Man, it really sells. So 24 00:01:05,640 --> 00:01:06,480 Speaker 2: tell me what's going on here? 25 00:01:06,520 --> 00:01:09,920 Speaker 1: Okay? So Mecha was founded in Melbourne in nineteen ninety seven. 26 00:01:09,760 --> 00:01:12,360 Speaker 2: Back when Savage Garden was dropping hit after hit. 27 00:01:12,520 --> 00:01:15,000 Speaker 1: It now has over one hundred and ten retail stores 28 00:01:15,080 --> 00:01:18,000 Speaker 1: in Australia and New Zealand and about seven thousand staff 29 00:01:18,080 --> 00:01:18,600 Speaker 1: and it's. 30 00:01:18,400 --> 00:01:21,640 Speaker 2: Become the go to store for all beauty bus including yourself, 31 00:01:21,720 --> 00:01:24,240 Speaker 2: YEP and be Man. Although Mecha is private, it's considered 32 00:01:24,319 --> 00:01:26,840 Speaker 2: a large company, so it needs to lodge its financial 33 00:01:26,840 --> 00:01:28,200 Speaker 2: results with ASEK. 34 00:01:27,920 --> 00:01:29,800 Speaker 1: Which can be accessed by the public. 35 00:01:29,840 --> 00:01:32,760 Speaker 2: So now, be Man. Mecha's just reported a record revenue 36 00:01:32,760 --> 00:01:35,200 Speaker 2: of one point two billion dollars for twenty twenty three, 37 00:01:35,319 --> 00:01:37,440 Speaker 2: up from nine hundred and seventy one million in twenty 38 00:01:37,440 --> 00:01:38,360 Speaker 2: twenty two, and in. 39 00:01:38,319 --> 00:01:40,960 Speaker 1: That year it's net profit also increased to twenty seven 40 00:01:41,000 --> 00:01:41,880 Speaker 1: point eight mil And. 41 00:01:41,800 --> 00:01:44,119 Speaker 2: Why are we talking about twenty twenty three financial results 42 00:01:44,160 --> 00:01:44,759 Speaker 2: right now? Be Man? 43 00:01:44,880 --> 00:01:49,320 Speaker 1: Well, juzzyboy, because Mecha filed its financials almost one year late, 44 00:01:49,640 --> 00:01:53,520 Speaker 1: which does have ACIC not happy in January, So be man. 45 00:01:53,400 --> 00:01:55,720 Speaker 2: If that's their revenue figure from twenty twenty three, you 46 00:01:55,720 --> 00:01:57,800 Speaker 2: can only imagine how much they've grown since. 47 00:01:57,840 --> 00:02:00,160 Speaker 1: But Juzy Boy being a private company means meche can 48 00:02:00,200 --> 00:02:03,840 Speaker 1: get away with a lot more than its public counterparts. 49 00:02:04,280 --> 00:02:05,600 Speaker 2: So what is the key learning here? 50 00:02:05,680 --> 00:02:08,640 Speaker 1: When the company is private, it doesn't owe anything to 51 00:02:09,080 --> 00:02:11,000 Speaker 1: anyone really except maybe the text office. 52 00:02:11,080 --> 00:02:14,120 Speaker 2: No updates on earnings, no market guidance, and certainly no 53 00:02:14,320 --> 00:02:15,320 Speaker 2: shareholder calls. 54 00:02:15,400 --> 00:02:18,320 Speaker 1: And Judsey Boy, it's even better when the only people 55 00:02:18,400 --> 00:02:21,280 Speaker 1: calling the shots are the founders or owners, and this 56 00:02:21,360 --> 00:02:23,720 Speaker 1: can be a huge strategic competitive advantage. 57 00:02:23,760 --> 00:02:25,960 Speaker 2: In fact, then a EORSA reported in the UK by 58 00:02:25,960 --> 00:02:29,360 Speaker 2: PTERWC down the private companies achieved an internal rate of 59 00:02:29,400 --> 00:02:32,000 Speaker 2: return nearly double that of the top companies on the 60 00:02:32,040 --> 00:02:32,919 Speaker 2: European Stock. 61 00:02:32,720 --> 00:02:36,360 Speaker 1: Exchange, and comparing Mecca to Adore Beauty really highlights a 62 00:02:36,400 --> 00:02:38,360 Speaker 1: big difference, does that Juzzy Boy does. 63 00:02:38,200 --> 00:02:40,720 Speaker 2: The door shares listed at six dollars ninety two per 64 00:02:40,720 --> 00:02:43,040 Speaker 2: share in twenty twenty one and then our sitting at 65 00:02:43,080 --> 00:02:45,920 Speaker 2: the Lulu price of seventy one cents per share. So 66 00:02:46,000 --> 00:02:48,239 Speaker 2: right now Mecha is laughing all the way to the 67 00:02:48,360 --> 00:02:52,440 Speaker 2: checkout for our second story. Westpac's former home loan brand 68 00:02:52,520 --> 00:02:56,040 Speaker 2: RAMS is in hot water with ASK after allegedly it 69 00:02:56,200 --> 00:02:58,680 Speaker 2: enabled years of dodgy home loan behavior. 70 00:02:59,080 --> 00:03:00,960 Speaker 1: Not good stuff coming out of this one, juzzy boy, 71 00:03:01,040 --> 00:03:01,920 Speaker 1: So tell me what's going on. 72 00:03:02,080 --> 00:03:04,359 Speaker 2: RAMS Home Loan is a homeland Lander that started back 73 00:03:04,400 --> 00:03:05,799 Speaker 2: in nineteen ninety one. 74 00:03:05,760 --> 00:03:08,600 Speaker 1: And for those playing at home, it stands for Registered 75 00:03:08,600 --> 00:03:12,560 Speaker 1: Australian Mortgage Security Just stick with RAMS, and it was 76 00:03:12,560 --> 00:03:14,519 Speaker 1: acquired by west back in two thousand and seven for 77 00:03:14,840 --> 00:03:16,520 Speaker 1: one hundred and forty million bucks but. 78 00:03:16,480 --> 00:03:19,160 Speaker 2: Be man at last year Westpac closed RAMS to new 79 00:03:19,200 --> 00:03:22,360 Speaker 2: business after I found out some misconduct was going on. 80 00:03:22,480 --> 00:03:24,920 Speaker 1: And if that wasn't bad enough, ACIK is now suing 81 00:03:25,000 --> 00:03:29,040 Speaker 1: RAMS for systemic misconduct between twenty nineteen and twenty twenty three. 82 00:03:29,120 --> 00:03:31,360 Speaker 2: Now be Man In particular, the case is focused on 83 00:03:31,480 --> 00:03:34,800 Speaker 2: staff who fudged customer financial data to help them get 84 00:03:34,800 --> 00:03:35,880 Speaker 2: loans across the line. 85 00:03:35,880 --> 00:03:39,360 Speaker 1: We're talking bake pay slips or unexplained changes to customer 86 00:03:39,360 --> 00:03:40,520 Speaker 1: income and expenses. 87 00:03:40,560 --> 00:03:43,040 Speaker 2: The crazy part is that some customers didn't even know 88 00:03:43,160 --> 00:03:44,600 Speaker 2: that the RAMS staff were doing this. 89 00:03:44,760 --> 00:03:47,400 Speaker 1: Imagine applying for a modest mortgage and suddenly you're a 90 00:03:47,440 --> 00:03:49,160 Speaker 1: CFO earning five hundred k. 91 00:03:49,200 --> 00:03:52,520 Speaker 2: Surprise, so b man, RAMS and We're back have admitted 92 00:03:52,560 --> 00:03:54,960 Speaker 2: liability and already forked out more than seven and a 93 00:03:54,960 --> 00:03:56,520 Speaker 2: half mil to affected customer. 94 00:03:56,520 --> 00:03:58,640 Speaker 1: But juzzy boy, there's more to come from ask. 95 00:03:58,400 --> 00:04:00,400 Speaker 2: Yep, and this sent the first time that live loans 96 00:04:00,440 --> 00:04:02,160 Speaker 2: have been a problem in the housing market. 97 00:04:02,240 --> 00:04:03,880 Speaker 1: So what is the key learning here? 98 00:04:04,320 --> 00:04:08,120 Speaker 2: Layer loans? Home loans approved using false financial. 99 00:04:07,600 --> 00:04:10,640 Speaker 1: Information could be made up, pace lips, could be false 100 00:04:10,720 --> 00:04:13,400 Speaker 1: job titles or magically disappearing expenses. 101 00:04:13,440 --> 00:04:16,479 Speaker 2: In the RAMS case, ASK alleges that RAMS staff submitted 102 00:04:16,520 --> 00:04:19,360 Speaker 2: fake documents to help borrows qualify for loans. 103 00:04:19,480 --> 00:04:21,360 Speaker 1: Check another one hundred and fifty k on your salary 104 00:04:21,400 --> 00:04:22,400 Speaker 1: here to borrow more. 105 00:04:22,279 --> 00:04:25,880 Speaker 2: Update your job from business analysts to vice president Business. 106 00:04:25,520 --> 00:04:29,560 Speaker 1: Analysts and tudiboy. Interestingly, Westpac was caught breaching the lending 107 00:04:29,680 --> 00:04:31,560 Speaker 1: laws itself back in twenty eighteen. 108 00:04:31,839 --> 00:04:34,160 Speaker 2: That was when it approved over ten thousand home loans 109 00:04:34,160 --> 00:04:36,279 Speaker 2: to borrowers who may not have been able to afford them. 110 00:04:36,360 --> 00:04:38,880 Speaker 1: And while that case was settled, Westpac could face a 111 00:04:38,920 --> 00:04:42,680 Speaker 1: maximum fine more than one hundred million dollars for RAMS breaches. 112 00:04:42,839 --> 00:04:46,560 Speaker 1: For our third and final story, Elon Musk's Ai company 113 00:04:46,760 --> 00:04:50,880 Speaker 1: Xai is launching a three hundred million dollars secondary share sale. 114 00:04:50,960 --> 00:04:53,360 Speaker 2: Elon must taking a break from political rans and memoors. 115 00:04:53,400 --> 00:04:54,479 Speaker 2: V Man tell me more. 116 00:04:54,480 --> 00:04:56,080 Speaker 1: Well, for those playing a little bit of catch up here, 117 00:04:56,080 --> 00:05:00,040 Speaker 1: Elon is still the universe's richest human yeap, previously. 118 00:04:59,720 --> 00:05:02,520 Speaker 2: Behind PayPal, and now he's behind Tesla and SpaceX and 119 00:05:02,600 --> 00:05:04,640 Speaker 2: Neurallink and most recently Xai. 120 00:05:04,800 --> 00:05:07,760 Speaker 1: After stepping down from Doje, Musk is making a big 121 00:05:07,760 --> 00:05:09,240 Speaker 1: comeback to the tech world. 122 00:05:08,960 --> 00:05:11,400 Speaker 2: Now, be Man. You may remember, Musk founds an AI 123 00:05:11,440 --> 00:05:13,839 Speaker 2: startup called Xai back in twenty twenty. 124 00:05:13,560 --> 00:05:16,520 Speaker 1: Three to compete against open Ai and Deep seek the 125 00:05:16,560 --> 00:05:18,040 Speaker 1: bigger AI rivals and Beman. 126 00:05:18,160 --> 00:05:21,159 Speaker 2: Similar to open AI's chat GBT, Xai has an AI 127 00:05:21,240 --> 00:05:22,839 Speaker 2: chatbot called grock. 128 00:05:22,720 --> 00:05:25,880 Speaker 1: Rewind to March this year, Musk merged Xai with his 129 00:05:25,920 --> 00:05:29,560 Speaker 1: social platform x formerly known as Twitter, in a private takeover. 130 00:05:29,640 --> 00:05:32,600 Speaker 2: That's right, he bought his own company. With his other company. 131 00:05:32,800 --> 00:05:35,480 Speaker 1: He slapped a one hundred and thirteen billion dollar valuation 132 00:05:35,600 --> 00:05:36,400 Speaker 1: on the whole thing. 133 00:05:36,400 --> 00:05:38,960 Speaker 2: Except a man, no actual cash changed hands. 134 00:05:39,000 --> 00:05:41,640 Speaker 1: So now he's launching a three hundred million dollar secondary 135 00:05:41,640 --> 00:05:43,440 Speaker 1: share sale for Xai. 136 00:05:43,080 --> 00:05:46,120 Speaker 2: Which means Xai employees can cash out by selling their 137 00:05:46,120 --> 00:05:47,960 Speaker 2: shares to fresh investors. 138 00:05:47,520 --> 00:05:49,440 Speaker 1: And will give us a sneak peek at what the 139 00:05:49,680 --> 00:05:52,599 Speaker 1: market really thinks Xai is worth. 140 00:05:52,680 --> 00:05:53,960 Speaker 2: So what is the key learning here? 141 00:05:54,040 --> 00:05:56,880 Speaker 1: Private companies can claim they're worth billions, but it really 142 00:05:56,920 --> 00:05:59,760 Speaker 1: means not much until someone else is willing to throw 143 00:06:00,080 --> 00:06:01,040 Speaker 1: real money at the company. 144 00:06:01,080 --> 00:06:03,760 Speaker 2: You see, be man. When no money changes hands, evaluation 145 00:06:04,040 --> 00:06:06,560 Speaker 2: is pretty much just a number on a spreadsheet, But when. 146 00:06:06,400 --> 00:06:08,839 Speaker 1: You investors agree to buy shares at a price, it 147 00:06:08,880 --> 00:06:10,919 Speaker 1: gives the valuation more legitimacy. 148 00:06:11,080 --> 00:06:14,160 Speaker 2: That's the difference between a potential value and a market 149 00:06:14,200 --> 00:06:15,080 Speaker 2: tested one. 150 00:06:14,880 --> 00:06:17,039 Speaker 1: And jazzy boy. We know that Elon Musk has a 151 00:06:17,080 --> 00:06:20,440 Speaker 1: tendency to be a tad flippant with valuations, so be man. 152 00:06:20,480 --> 00:06:22,560 Speaker 2: If Musk is able to pull off this valuation as 153 00:06:22,640 --> 00:06:25,120 Speaker 2: part of the secondary share sale, it might actually suggest 154 00:06:25,160 --> 00:06:26,839 Speaker 2: there's some logic to this price. 155 00:06:26,600 --> 00:06:28,839 Speaker 1: That if you can't, employees and investors will be left 156 00:06:28,839 --> 00:06:30,360 Speaker 1: holding the grock bag. 157 00:06:31,160 --> 00:06:33,320 Speaker 2: As you roll into the weekend, it's hard to think 158 00:06:33,320 --> 00:06:35,680 Speaker 2: about doing some productive things. If you're looking too start 159 00:06:35,720 --> 00:06:38,000 Speaker 2: investing but have no idea what to do. We have 160 00:06:38,120 --> 00:06:40,480 Speaker 2: got you in the Flux Academy this month. This course 161 00:06:40,480 --> 00:06:43,440 Speaker 2: about Ets dishes up what they are, why everyone's talking 162 00:06:43,440 --> 00:06:45,440 Speaker 2: about them, and how to actually use them to build 163 00:06:45,480 --> 00:06:48,400 Speaker 2: a diversified portfolio. Plus you can win up to five 164 00:06:48,480 --> 00:06:50,680 Speaker 2: hundred dollars in prices. Make sure to download the Flux 165 00:06:50,680 --> 00:06:52,000 Speaker 2: app and check out the academy. 166 00:06:52,040 --> 00:06:56,480 Speaker 1: Thanks for listening, and yes, we'll see you on Monday.