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Speaker 1: This is what the flux.

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Speaker 2: I'm Brett and Justin and it Monday, the third of.

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Speaker 1: March, Juzzy Boy, Qatar Airways and Virgin Australia have officially

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Speaker 1: had their marriage approved by the A Triple C. Qatar

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Speaker 1: Airways will now own a twenty five percent steak in

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Speaker 1: Virgin Australia and this could create a much more competitive

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Speaker 1: flight deals fight Aussies and Qantas has responded with the

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Speaker 1: words we always said, we welcome competition. Game officially on

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Speaker 1: block dam.

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Speaker 2: As we roll over into the month of March, we

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Speaker 2: have a brand new Academy that we're very proud to launch.

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Speaker 2: It's all about understanding Super. There's more than three and

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Speaker 2: a half trillion dollars stored in Super across Australia and

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Speaker 2: most people don't even know how much money they've got

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Speaker 2: or where it sits. So we cover it all in

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Speaker 2: the Fox Academy this month with prizes and leaderboards. View

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Speaker 2: to wins. Make sure to check out the Flex Academy

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Speaker 2: this month.

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Speaker 1: Three insightful stories Today Juzzy Boy, Let's do it for

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Speaker 1: our first. Coles has announced a jump in earnings to

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Speaker 1: over one point one billion dollars just for the last

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Speaker 1: six months, and yes, it beat the market's expectations.

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Speaker 2: Will Worth knew this day was coming after the debacle,

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Speaker 2: So tell me more.

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Speaker 1: Well, Josie, wait, we know that Cole's plays second fiddle

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Speaker 1: to the heavyweight champ Woolies in this supermarket space.

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Speaker 2: Yep. Cole's currently has around twenty eight percent market share

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Speaker 2: in the space.

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Speaker 1: But while Wooli's has been struggling, Cole's has been living

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Speaker 1: its best life.

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Speaker 2: Yeah. It saw its sales from its supermarket division jump

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Speaker 2: four point three percent over twenty point six billion dollars.

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Speaker 1: And its earnings also jumps seven percent if you don't mind,

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Speaker 1: to nearly one point one bill and.

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Speaker 2: Then, man, well, Coles has performed strongly. You must admit

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Speaker 2: it was given a bit of a supermarket free kick.

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Speaker 1: Yeah, that was when Woolies had a strike and shelves

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Speaker 1: barely had any stock.

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Speaker 2: In fact, Cole's reckons it generated one hundred and twenty

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Speaker 2: eight million dollars in incremental sales from Woolli's own goal.

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Speaker 1: But the skill was being able to take advantage of

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Speaker 1: the opportunity.

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Speaker 2: And pounce, and pounce they did.

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Speaker 1: Next minute, shares jumped over four percent, hitting an all

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Speaker 1: time record high.

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Speaker 2: So what is the key learning here?

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Speaker 1: One company's misfortune can be another company's golden egg.

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Speaker 2: You see, the man winning in the last half wasn't

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Speaker 2: just about having more stores or better products up.

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Speaker 1: It's also about timing and responsiveness to a bit of

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Speaker 1: a disaster.

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Speaker 2: Yeah, Coles took advantage of the Woolies opportunity by adding

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Speaker 2: more staff to their stores and their warehouses.

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Speaker 1: They also work closely with suppliers to increase product deliveries

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Speaker 1: and the man.

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Speaker 2: By rapidly adapting to the situation, Coles turned a competitor's

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Speaker 2: misfortune into their own opportunity for growth.

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Speaker 1: Now Cole's is the first company to take advantage of

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Speaker 1: a competitor's mishap.

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Speaker 2: Juzzy boy, yep. Remember when Optors suffered their major data breach.

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Speaker 1: I do a casual nine point eight million customers had

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Speaker 1: their data compromised. If my memory served me in the

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Speaker 1: correct fashion, yep.

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Speaker 2: And in the following months there were tens of thousands

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Speaker 2: of Optics customers that moved over to Telstra.

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Speaker 1: And Telstra's profits jumped twenty six percent.

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Speaker 2: So a man, only time will tell whether this was

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Speaker 2: a temporary blit. Foolies, where the customers have taken their

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Speaker 2: shopping habits elsewhere.

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Speaker 1: For our second story, Star Entertainment Group is fighting a

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Speaker 1: race against time to find new investors asapp or it

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Speaker 1: may collapse.

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Speaker 2: Start really rolling at the very last minute, be Man,

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Speaker 2: and the odds aren't looking great. So tell me what's

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Speaker 2: going on here.

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Speaker 1: So, Starr Entertainment Group is the ASX as said, gambling

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Speaker 1: and entertainment company.

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Speaker 2: You may know Star Entertainment Group from its casinos, the

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Speaker 2: Star Bricks Vegas, the Star Gold Coast, and the Star Sydney.

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Speaker 1: Now, once upon a time, Star Wars a high roll

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Speaker 1: of the casino world. It was worth more than five

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Speaker 1: billion dollars.

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Speaker 2: But then the house of cards came crashing down.

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Speaker 1: Yeap, major scandals, including a money laundering hit, and they've

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Speaker 1: been on a losing streak ever since.

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Speaker 2: So, b Man, here's what's going on. Star Wars meant

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Speaker 2: to release its half year financial reports last Friday.

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Speaker 1: Hit me with the butt over here, juzzy boy.

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Speaker 2: But its board wasn't comfortable to sign off on its

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Speaker 2: financial statements.

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Speaker 1: Because they weren't confident that the company could pay their

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Speaker 1: bills when they followed due.

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Speaker 2: You see, be Man, Star's been desperately rattling it in

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Speaker 2: looking for new investors to meet its debts and its

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Speaker 2: short term payments.

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Speaker 1: But now the board has warned that if it doesn't

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Speaker 1: receive any funding, it will be all over red rover.

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Speaker 2: Because it wouldn't be a going concern anymore. So what's

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Speaker 2: the key learning here? Going concern is an accounting principle

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Speaker 2: that assumes that company will continuous operations into the foreseeable future.

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Speaker 1: Now, for Star Entertainment, not being able to secure funding

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Speaker 1: means they won't be able to pay short term debts

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Speaker 1: like payroll or interest repayments of loans and be man.

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Speaker 2: This puts their going concern status at risk.

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Speaker 1: You see, Star investors would be closely watching whether the

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Speaker 1: board signs off on these statements.

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Speaker 2: If they did, it would be a positive signal for

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Speaker 2: Star's financial health and their viability.

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Speaker 1: But given the CEO reckons it would take hundreds of

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Speaker 1: millions to keep Star running, it kind of seems like

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Speaker 1: the writing is on that wall.

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Speaker 2: And after the announcement, Star share price dropped ten percent

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Speaker 2: and it's now worth just three hundred and thirty five

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Speaker 2: million dollars.

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Speaker 1: Or seven percent of its peak value.

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Speaker 2: For our third and final story, in Vidia suffered a

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Speaker 2: near five hundred billion US dollar fall in its market

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Speaker 2: value after reporting better than expected results.

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Speaker 1: The investment world has a wonderful and wacky way of

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Speaker 1: dealing with things, Jazi boy, So tell me how this happened.

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Speaker 2: Okay, So in Vidia has been the hottest name on

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Speaker 2: the planet for the past few years.

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Speaker 1: Be Man YEP started in nineteen ninety three with the

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Speaker 1: goal to design really sophisticated computer chips for graphics in

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Speaker 1: video games. How about that. But by two thousand and

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Speaker 1: six it began designing computer chips for AI and machine learning.

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Speaker 1: Next minute, it had Microsoft, Amazon and Meta as its

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Speaker 1: key clients.

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Speaker 2: In fact, the Man. In the last two years, in

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Speaker 2: video share price has jumped by more than five hundred

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Speaker 2: and twenty five percent, and now in Video announced its

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Speaker 2: quarterly revenue jump seventy four percent compared to this time

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Speaker 2: last year. Sounds pretty good, and it did beat expectations

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Speaker 2: by nearly three percent. But next minute, in Video share

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Speaker 2: price dropped more than eight percent, or roughly five hundred

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Speaker 2: billion US dollars.

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Speaker 1: And for those playing at home, yes, that's nearly two

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Speaker 1: times the GDP of New Zealand.

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Speaker 2: Wow. So what is the key learning here.

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Speaker 1: With rapid growth comes rapidly growing expectations.

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Speaker 2: You see, a man. The reason for the selloff in

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Speaker 2: video shares is because their results didn't beat expectations by

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Speaker 2: as much as usual.

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Speaker 1: Its revenue and earnings per share were better than investor expectations,

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Speaker 1: but not enough better.

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Speaker 2: Get this, The fact that only beat its earnings by

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Speaker 2: two point eight four percent means it was the smallest

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Speaker 2: earnings beat since twenty twenty two.

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Speaker 1: But does a boy. Compared to other tech companies in

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Speaker 1: the US, it's still smashed their quarterly results.

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Speaker 2: Yeah, Apple, Amazon, Alphabet, Meta, and Microsoft recorded quarterly revenue

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Speaker 2: growth of twelve percent on.

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Speaker 1: Average compared to in videos seventy eight percent.

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Speaker 2: But be man as the second most valuable company in

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Speaker 2: the whole wide world. Out of nowhere, it seems like

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Speaker 2: Invidia is currently held to a different standard. Yeah, fluxdam.

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Speaker 2: If your super is sitting in one or two or

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Speaker 2: even three accounts and you don't know how much is

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Speaker 2: in there or how much your return is, you need

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Speaker 2: to do the Flox Academy this month. It could be

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Speaker 2: one of the best investments of your time and potentially

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Speaker 2: money that you ever made. To make sure to download

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Speaker 2: the Flux app and check out the Super Academy this month.

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