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Speaker 1: This is what the Flux. I'm Brett and I'm Justin

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Speaker 1: and it's Friday, the eleventh of October. Flex Family.

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Speaker 2: We've got a little bit of a different intro today

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Speaker 2: because rather than sharing business news on other companies, today's

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Speaker 2: intro is about Flux.

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Speaker 1: Yep, we are very excited to announce that Flex has

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Speaker 1: been acquired by net Wealth and ASX two hundred company

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Speaker 1: and one of the fastest growing wealth management and tech

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Speaker 1: companies in.

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Speaker 2: Australia and Flex Family very importantly, our podcast, our newsletter

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Speaker 2: and our app will all be remaining the exact same, Plus.

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Speaker 1: B Man, we now have even more resources to create

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Speaker 1: and do more and more and more. To stay tuned

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Speaker 1: as we share more updates over the coming months.

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Speaker 2: Judie Boy, three earth shattering stories today, let's do it

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Speaker 2: for our first. Rio Tinto has swum against the lithium

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Speaker 2: tide by acquiring arcadium lithium for nine point nine billion dollars.

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Speaker 1: How when everyone's turning back to copper, Rio is backing

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Speaker 1: in the lithium. So tell me well, Jazie Boy.

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Speaker 2: Rio Tinto is the world's second largest metals and mining company,

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Speaker 2: behind the other Aussie company, BHP.

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Speaker 1: Rio Tinto is an absolute behemoth.

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Speaker 2: Yeah, it is more than twenty three thousand people mining

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Speaker 2: iron ore, aluminium, copper, and now Jusi Boy Rio just

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Speaker 2: dropped a wheelbarrow full of cash nine point nine billion

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Speaker 2: dollars to be exact, to acquire arcadium lithium.

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Speaker 1: Now be man. We know that lithium has been the

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Speaker 1: hottest of hot metals over the last few years since

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Speaker 1: they power the batteries in electric vehicles.

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Speaker 2: But what's interesting is despite the boom in lithium, there's

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Speaker 2: actually been a ninety percent slump in lithium prices over

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Speaker 2: the past eighteen months.

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Speaker 1: That the man Riatinto CEO is backing in lithium over

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Speaker 1: the long term. So what's the key learning here? Be

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Speaker 1: fearful when others are greedy, and greedy when others are fearful.

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Speaker 2: Oh, a very famous quote from your man Warren Buffet.

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Speaker 1: Yep. It's all about buying solid companies when the market

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Speaker 1: has assessed them too negatively based on short term factors.

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Speaker 2: You see, Juzi boy lithium has dropped by ninety percent

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Speaker 2: in the past eighteen months.

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Speaker 1: If you zoom out a little bit further, it's still

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Speaker 1: up over three hundred percent. Over the past three years.

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Speaker 2: And the CEO of Rio Tinto is more focused on

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Speaker 2: the average lithium price over the next decade rather than

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Speaker 2: the next year.

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Speaker 1: You see be man. As a multi multi, multi billion

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Speaker 1: dollar company, Rio Tinto knows it'll be around for a while,

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Speaker 1: so it can take advantage of the market's short term

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Speaker 1: panic and does it. Boy what's the main reason for

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Speaker 1: the drop in lithium prices. Well, there's been a slowing

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Speaker 1: in the demand for electric vehicles around the world.

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Speaker 2: But again, evs are expected to grow more than six

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Speaker 2: point six percentage year across the world.

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Speaker 1: So while it may not be experiencing the rapid growth

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Speaker 1: or volatility of previous years, it's still trending in the

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Speaker 1: right direction.

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Speaker 2: And that is exactly why Rio Tinto has snapped up Arcadia.

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Speaker 1: For our second story, stan the streaming service owned by

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Speaker 1: nine Entertainment, is considering bringing advertising onto its platform to

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Speaker 1: boost its revenue. Another one bites the dust for young

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Speaker 1: uncle Stanley. What's the story here, does boyd stan is

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Speaker 1: the aussy streaming service that was launched back in twenty fifteen.

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Speaker 2: It's actually the fourth largest streaming service in Australia, behind

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Speaker 2: the international Big wigs of Disney plus Amazon Prime and

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Speaker 2: of course Netflix.

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Speaker 1: Now b man, it's the platform that has licenses to

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Speaker 1: shows like Normal People, Breaking Bad and The OC in Australia,

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Speaker 1: which I know you loved and watched recently I did. Indeed,

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Speaker 1: now now doeszy Boy.

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Speaker 2: Although STAN has grown to over two point two million

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Speaker 2: binge watchers paying for a subscription, STAN is reportedly looking

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Speaker 2: to introduce a new revenue stream.

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Speaker 1: Don't say it, don't say it, don't say it, don't

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Speaker 1: say it. That's it. I'm gonna say it.

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Speaker 2: STAN is looking to introduce advertising onto its platform to

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Speaker 2: increase revenue.

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Speaker 1: Hmmm, wonder where they got this? Completely original never been

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Speaker 1: done before, I diear from well doesy boy?

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Speaker 2: Till now, Stan's been one of the only platforms that

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Speaker 2: hasn't run ads.

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Speaker 1: While still competing alongside the streaming giants like Netflix and Amazon.

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Speaker 1: But does it boys?

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Speaker 2: Stan subscriber numbers have been sitting flat for the last

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Speaker 2: two years.

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Speaker 1: So if it wants to increase its revenue, it'll either

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Speaker 1: need to increase prices to customers.

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Speaker 2: Or perhaps something crazy, find a new source of revenue.

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Speaker 1: So what is the key learning here?

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Speaker 2: As any industry evolves, needs to continue to find new

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Speaker 2: and often creative ways to increase revenue.

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Speaker 1: Ivan Man, we know for streaming services the main lever

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Speaker 1: to increase revenue is to jack up the prices of

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Speaker 1: those subscriptions.

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Speaker 2: But Josie, wait, give it our competitive the stream market

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Speaker 2: is it can be very easy to lose market share

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Speaker 2: when you hike up those prices too high, which.

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Speaker 1: Explains why advertising has become a popular route to unlocking

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Speaker 1: more revenue for streaming services.

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Speaker 2: Heart We first saw Netflix enter the ad scene, and

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Speaker 2: they were soon joined by Disney Plus and Hulu and Hbo, Max, Amazon,

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Speaker 2: Paramount Plus.

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Speaker 1: And now potentially stand as well. Yep.

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Speaker 2: But Josie, boy, the challenge with introducing ads to Stan

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Speaker 2: is that it operates alongside Nine Entertainments free to air channels, which.

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Speaker 1: Means it needs to make sure it doesn't pull revenue

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Speaker 1: away and actually cannibalize Nine's free platforms.

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Speaker 2: For our third and final story, gooz Money Gomez, the

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Speaker 2: now ASX listed, a Mexican food chain, announced quarterly sales

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Speaker 2: growth above it's already ambitious expectation.

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Speaker 1: Holy Gogamally, somebody in Australia is eating a lot of burritos.

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Speaker 1: Here be man, It's true and it's not me olu,

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Speaker 1: so tell me more nuts.

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Speaker 2: So Guzman Igomez is the Mexican style fast food chain

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Speaker 2: that started in Sydney in two thousand and six.

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Speaker 1: Yeah, their plan was to swap out sloppy taco is

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Speaker 1: a fresh, tastier and healthier option, but still serve them

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Speaker 1: with fast food speed. Sounds a little bit like a

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Speaker 1: Mexican macas. In June's year, gig became one of the

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Speaker 1: most widely debated stocks to list on the share market.

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Speaker 2: YEP listed at a market evaluation of three point three

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Speaker 2: billion dollar.

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Speaker 1: Dude. Some investors thought it was a burrito stuff too

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Speaker 1: full and it wouldn't meet its lofty targets. Others thought

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Speaker 1: the price actually needed a little bit more salsa. But

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Speaker 1: now GAG's announced that its sales have grown to over

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Speaker 1: two hundred and seventy eight million dollars in the first

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Speaker 1: three months of this financial year, and it.

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Speaker 2: Was on track to hit its prospectus forecasts.

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Speaker 1: Interesting and a share price by the Babe Man also

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Speaker 1: up more than twenty nine percent since it's listing, quite

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Speaker 1: the fiesta for investors and jes it boy.

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Speaker 2: A big reason for this is the limited number of

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Speaker 2: shares available in the free float.

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Speaker 1: Interesting, So tell me what is the key landing here?

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Speaker 2: The free float first to the portion of a company's

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Speaker 2: shares that are available for trading by the general public.

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Speaker 1: You see be man. A lower free float can create scarcity,

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Speaker 1: which can drive up share.

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Speaker 2: Prices, obviously because more investors are chasing fewer shares.

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Speaker 1: But here's where it gets interesting. Because gug has a

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Speaker 1: very limited free flow.

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Speaker 2: Y yep, just fifteen percent of its stock is considered

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Speaker 2: available to the public.

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Speaker 1: And given its performance has been inline or sometimes better

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Speaker 1: than expectation, investors have been gobbling up GAG shares and

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Speaker 1: driving up the price quicker than you can say extra.

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Speaker 2: Guark aha, and as a result, Jasie Boyd, this has

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Speaker 2: contributed to its rapid share price growth since its IPO.

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Speaker 1: Fox Am just wanted to thank you once again for

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Speaker 1: being such big supporters of Fox's app, podcast and newsletter

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Speaker 1: over the last few years.

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Speaker 2: And very excitingly, now that we're in by netwealth, it

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Speaker 2: means that we'll have even more resources to create and

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Speaker 2: do much much more. So stay tuned as we share

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Speaker 2: more exciting updates over their coming months.

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Speaker 1: Thanks for listening and we'll see you on Monday,