Speaker 1: This is what the flux.
Speaker 2: I'm Brett and Justin and it Monday, the third of.
Speaker 1: March, Juzzy Boy, Qatar Airways and Virgin Australia have officially
Speaker 1: had their marriage approved by the A Triple C. Qatar
Speaker 1: Airways will now own a twenty five percent steak in
Speaker 1: Virgin Australia and this could create a much more competitive
Speaker 1: flight deals fight Aussies and Qantas has responded with the
Speaker 1: words we always said, we welcome competition. Game officially on
Speaker 1: block dam.
Speaker 2: As we roll over into the month of March, we
Speaker 2: have a brand new Academy that we're very proud to launch.
Speaker 2: It's all about understanding Super. There's more than three and
Speaker 2: a half trillion dollars stored in Super across Australia and
Speaker 2: most people don't even know how much money they've got
Speaker 2: or where it sits. So we cover it all in
Speaker 2: the Fox Academy this month with prizes and leaderboards. View
Speaker 2: to wins. Make sure to check out the Flex Academy
Speaker 2: this month.
Speaker 1: Three insightful stories Today Juzzy Boy, Let's do it for
Speaker 1: our first. Coles has announced a jump in earnings to
Speaker 1: over one point one billion dollars just for the last
Speaker 1: six months, and yes, it beat the market's expectations.
Speaker 2: Will Worth knew this day was coming after the debacle,
Speaker 2: So tell me more.
Speaker 1: Well, Josie, wait, we know that Cole's plays second fiddle
Speaker 1: to the heavyweight champ Woolies in this supermarket space.
Speaker 2: Yep. Cole's currently has around twenty eight percent market share
Speaker 2: in the space.
Speaker 1: But while Wooli's has been struggling, Cole's has been living
Speaker 1: its best life.
Speaker 2: Yeah. It saw its sales from its supermarket division jump
Speaker 2: four point three percent over twenty point six billion dollars.
Speaker 1: And its earnings also jumps seven percent if you don't mind,
Speaker 1: to nearly one point one bill and.
Speaker 2: Then, man, well, Coles has performed strongly. You must admit
Speaker 2: it was given a bit of a supermarket free kick.
Speaker 1: Yeah, that was when Woolies had a strike and shelves
Speaker 1: barely had any stock.
Speaker 2: In fact, Cole's reckons it generated one hundred and twenty
Speaker 2: eight million dollars in incremental sales from Woolli's own goal.
Speaker 1: But the skill was being able to take advantage of
Speaker 1: the opportunity.
Speaker 2: And pounce, and pounce they did.
Speaker 1: Next minute, shares jumped over four percent, hitting an all
Speaker 1: time record high.
Speaker 2: So what is the key learning here?
Speaker 1: One company's misfortune can be another company's golden egg.
Speaker 2: You see, the man winning in the last half wasn't
Speaker 2: just about having more stores or better products up.
Speaker 1: It's also about timing and responsiveness to a bit of
Speaker 1: a disaster.
Speaker 2: Yeah, Coles took advantage of the Woolies opportunity by adding
Speaker 2: more staff to their stores and their warehouses.
Speaker 1: They also work closely with suppliers to increase product deliveries
Speaker 1: and the man.
Speaker 2: By rapidly adapting to the situation, Coles turned a competitor's
Speaker 2: misfortune into their own opportunity for growth.
Speaker 1: Now Cole's is the first company to take advantage of
Speaker 1: a competitor's mishap.
Speaker 2: Juzzy boy, yep. Remember when Optors suffered their major data breach.
Speaker 1: I do a casual nine point eight million customers had
Speaker 1: their data compromised. If my memory served me in the
Speaker 1: correct fashion, yep.
Speaker 2: And in the following months there were tens of thousands
Speaker 2: of Optics customers that moved over to Telstra.
Speaker 1: And Telstra's profits jumped twenty six percent.
Speaker 2: So a man, only time will tell whether this was
Speaker 2: a temporary blit. Foolies, where the customers have taken their
Speaker 2: shopping habits elsewhere.
Speaker 1: For our second story, Star Entertainment Group is fighting a
Speaker 1: race against time to find new investors asapp or it
Speaker 1: may collapse.
Speaker 2: Start really rolling at the very last minute, be Man,
Speaker 2: and the odds aren't looking great. So tell me what's
Speaker 2: going on here.
Speaker 1: So, Starr Entertainment Group is the ASX as said, gambling
Speaker 1: and entertainment company.
Speaker 2: You may know Star Entertainment Group from its casinos, the
Speaker 2: Star Bricks Vegas, the Star Gold Coast, and the Star Sydney.
Speaker 1: Now, once upon a time, Star Wars a high roll
Speaker 1: of the casino world. It was worth more than five
Speaker 1: billion dollars.
Speaker 2: But then the house of cards came crashing down.
Speaker 1: Yeap, major scandals, including a money laundering hit, and they've
Speaker 1: been on a losing streak ever since.
Speaker 2: So, b Man, here's what's going on. Star Wars meant
Speaker 2: to release its half year financial reports last Friday.
Speaker 1: Hit me with the butt over here, juzzy boy.
Speaker 2: But its board wasn't comfortable to sign off on its
Speaker 2: financial statements.
Speaker 1: Because they weren't confident that the company could pay their
Speaker 1: bills when they followed due.
Speaker 2: You see, be Man, Star's been desperately rattling it in
Speaker 2: looking for new investors to meet its debts and its
Speaker 2: short term payments.
Speaker 1: But now the board has warned that if it doesn't
Speaker 1: receive any funding, it will be all over red rover.
Speaker 2: Because it wouldn't be a going concern anymore. So what's
Speaker 2: the key learning here? Going concern is an accounting principle
Speaker 2: that assumes that company will continuous operations into the foreseeable future.
Speaker 1: Now, for Star Entertainment, not being able to secure funding
Speaker 1: means they won't be able to pay short term debts
Speaker 1: like payroll or interest repayments of loans and be man.
Speaker 2: This puts their going concern status at risk.
Speaker 1: You see, Star investors would be closely watching whether the
Speaker 1: board signs off on these statements.
Speaker 2: If they did, it would be a positive signal for
Speaker 2: Star's financial health and their viability.
Speaker 1: But given the CEO reckons it would take hundreds of
Speaker 1: millions to keep Star running, it kind of seems like
Speaker 1: the writing is on that wall.
Speaker 2: And after the announcement, Star share price dropped ten percent
Speaker 2: and it's now worth just three hundred and thirty five
Speaker 2: million dollars.
Speaker 1: Or seven percent of its peak value.
Speaker 2: For our third and final story, in Vidia suffered a
Speaker 2: near five hundred billion US dollar fall in its market
Speaker 2: value after reporting better than expected results.
Speaker 1: The investment world has a wonderful and wacky way of
Speaker 1: dealing with things, Jazi boy, So tell me how this happened.
Speaker 2: Okay, So in Vidia has been the hottest name on
Speaker 2: the planet for the past few years.
Speaker 1: Be Man YEP started in nineteen ninety three with the
Speaker 1: goal to design really sophisticated computer chips for graphics in
Speaker 1: video games. How about that. But by two thousand and
Speaker 1: six it began designing computer chips for AI and machine learning.
Speaker 1: Next minute, it had Microsoft, Amazon and Meta as its
Speaker 1: key clients.
Speaker 2: In fact, the Man. In the last two years, in
Speaker 2: video share price has jumped by more than five hundred
Speaker 2: and twenty five percent, and now in Video announced its
Speaker 2: quarterly revenue jump seventy four percent compared to this time
Speaker 2: last year. Sounds pretty good, and it did beat expectations
Speaker 2: by nearly three percent. But next minute, in Video share
Speaker 2: price dropped more than eight percent, or roughly five hundred
Speaker 2: billion US dollars.
Speaker 1: And for those playing at home, yes, that's nearly two
Speaker 1: times the GDP of New Zealand.
Speaker 2: Wow. So what is the key learning here.
Speaker 1: With rapid growth comes rapidly growing expectations.
Speaker 2: You see, a man. The reason for the selloff in
Speaker 2: video shares is because their results didn't beat expectations by
Speaker 2: as much as usual.
Speaker 1: Its revenue and earnings per share were better than investor expectations,
Speaker 1: but not enough better.
Speaker 2: Get this, The fact that only beat its earnings by
Speaker 2: two point eight four percent means it was the smallest
Speaker 2: earnings beat since twenty twenty two.
Speaker 1: But does a boy. Compared to other tech companies in
Speaker 1: the US, it's still smashed their quarterly results.
Speaker 2: Yeah, Apple, Amazon, Alphabet, Meta, and Microsoft recorded quarterly revenue
Speaker 2: growth of twelve percent on.
Speaker 1: Average compared to in videos seventy eight percent.
Speaker 2: But be man as the second most valuable company in
Speaker 2: the whole wide world. Out of nowhere, it seems like
Speaker 2: Invidia is currently held to a different standard. Yeah, fluxdam.
Speaker 2: If your super is sitting in one or two or
Speaker 2: even three accounts and you don't know how much is
Speaker 2: in there or how much your return is, you need
Speaker 2: to do the Flox Academy this month. It could be
Speaker 2: one of the best investments of your time and potentially
Speaker 2: money that you ever made. To make sure to download
Speaker 2: the Flux app and check out the Super Academy this month.
Speaker 1: Thanks for listening, and we'll see you on Wednesday.