Speaker 1: This is what the Flux. I'm Brett and I't justin
Speaker 1: and it's Wednesday, the twelve for February, Dozy Boyd. The
Speaker 1: ATO has been cracking down left, right and center, and
Speaker 1: the latest industry to feel their wrath is sunscreen. Get
Speaker 1: this one. You may not know this, but sunscreen is
Speaker 1: actually GST three. But now the ATO has said that
Speaker 1: if you want to sell sunscreen GST three, the product
Speaker 1: needs to be marketed principally as sun protection, not a
Speaker 1: strawberry lip farm with SBF fifteen fox A. Did you
Speaker 1: know the ASX index in January wrotes four point six percent,
Speaker 1: which is a pretty good flex for the first month
Speaker 1: of the year. There are some seriously top performing stocks
Speaker 1: in ASX from January and we have it all covered
Speaker 1: in the Flux out, so make sure to check it
Speaker 1: out to see what were the best performing stocks in
Speaker 1: January this year. Three Beta stories today, Chuzzy boy, Let's
Speaker 1: do it for our first. JB Hi Fi has announced
Speaker 1: better than expected sales growth for the past six months,
Speaker 1: but its share price still fell five percent. Robo Vacuum's
Speaker 1: really leading from the frontier for JB High Fi. So
Speaker 1: what's going on? Well? Jbhigh Fi is obviously the ossie
Speaker 1: electronics of retailer that's been around since nineteen seventy four YEP.
Speaker 1: Back in the day, it was selling twenty inch TVs
Speaker 1: and Elton Junker setts that got schewed up in your cartterea.
Speaker 1: Nowadays we're talking everything from iPhones to smart home devices,
Speaker 1: TV's washing machines with Wi fi that practically does your
Speaker 1: taxes for you and men man. Jbhigh Fi also owns
Speaker 1: the Good Guys and more recently n S, which had
Speaker 1: acquired in September last year, and now jbhi Fi has
Speaker 1: announced sales growth of nearly ten percent for the six
Speaker 1: months to December and net profit rows eight percent as well.
Speaker 1: But while that sounds good, it's share price fell five
Speaker 1: percent y jbco was a little cautious. He said they're
Speaker 1: expecting rising prices from suppliers and that will be passed
Speaker 1: on to consumers and it might impact their upcoming results
Speaker 1: and be man. Might I remind you that JB has
Speaker 1: been trading on a forward profit multiple of just over
Speaker 1: twenty three times YEP. Compare that to a long term
Speaker 1: average for the consumer discretionary sector of about eighteen times,
Speaker 1: so be Man, investors were thinking, maybe it's time to
Speaker 1: reconsider this stock. So what is the key learning here?
Speaker 1: Investors don't just look at what companies have done in
Speaker 1: the past, but also they look at what's next. And
Speaker 1: when a company's share price has jumped seventy percent in
Speaker 1: a year a hem JB high five, expectations go through
Speaker 1: the roof and that's where forward profit multiples come in.
Speaker 1: A forward profit multiple compares a company's share price to
Speaker 1: its expected future earnings. If the profit multiple is high
Speaker 1: compared to the sector's average, it means that investors are
Speaker 1: betting on strong future growth. But if growth starts to
Speaker 1: slow down, even slightly, the market can punish the company,
Speaker 1: and that is what happened here with JB Hello five
Speaker 1: percent drop in share value. For our second story, Donald
Speaker 1: Trump has warned of a fresh set of tariffs and
Speaker 1: this time it could affect the Australian economy in a
Speaker 1: big way. Strap on your heart, hat b Man, because
Speaker 1: we're back in the era of Trump tariffs. So tell
Speaker 1: me what well, Jasi boy. We spoke on the pod
Speaker 1: the other week about Trump's plan to put twenty five
Speaker 1: percent tariffs on Canada and Mexico which temporarily pause, and
Speaker 1: a ten percent tariff on Chinese goods, which has already
Speaker 1: kind of started a bit of a trade war. Yes,
Speaker 1: but now Donald Trump has warned of a new tariff
Speaker 1: on any steel and aluminium that comes into the US,
Speaker 1: or is the US like to call it aluminum. He's
Speaker 1: planning to put a twenty five percent tariff on these imports.
Speaker 1: That's a tax on imported goods. Now, in the past,
Speaker 1: be Man Australia has got a get out of tariff
Speaker 1: jail free car. By this time, Trump's saying no exception.
Speaker 1: So next minute Albert gave Trump a call and begged
Speaker 1: for an exemption, which is supposedly under consideration. So what's
Speaker 1: the key learning here? There is an age old debate
Speaker 1: between free trade and protectionism. Free trade means countries remove
Speaker 1: barriers like tariff, which makes it easier to buy and
Speaker 1: sell goods across borders. Now, protectionism, on the other hand,
Speaker 1: is when a country places trade barriers on imports to
Speaker 1: protect their local industries from foreign competition and be man.
Speaker 1: The US has traditionally supported free trade, but under Trump,
Speaker 1: tariffs have become his go to economic weapon. But does
Speaker 1: this boy Unfortunately, Australia is particular vulnerable to global trade wars,
Speaker 1: and that's because we export everything around the world, from
Speaker 1: einor to the US and wine to China back. Australia
Speaker 1: exported one billion dollars in aluminium, iron and steel to
Speaker 1: the US in twenty twenty three. So if tariff's are introduced,
Speaker 1: the government needs to throw on its hide his vest
Speaker 1: and hustle hard to protect Australia's interests on the global stage.
Speaker 1: For our third and final story, a group of investors
Speaker 1: are led by Elon Musk, has made a ninety seven
Speaker 1: point four billion US dollar offer to buy the non
Speaker 1: profit organization that controls chat GPT, who clearly Elon not
Speaker 1: happy enough with his XAI. So what is going on here? Well,
Speaker 1: the company behind chat GPT is called open Ai and
Speaker 1: it was initially launched in twenty fifteen as a non
Speaker 1: profit research lab and b man. It was co founded
Speaker 1: by a man called Sam Holtman and Elon Musk, but Juzboy.
Speaker 1: In twenty nineteen, Elon left open AI and Altman created
Speaker 1: a capped profit subsidiary which allowed open ai to raise
Speaker 1: capital from external investors, and since then it's been an
Speaker 1: all out war between Musk and Altman because Elon Musk,
Speaker 1: for lease, open ai has violated its founding mission to
Speaker 1: remain as a nonprofit. But now Musk and a group
Speaker 1: of investors have put a ninety seven point four billion
Speaker 1: US dollar offer to open ai, the nonprofit organization which
Speaker 1: also happens to own a portion of the for profit part.
Speaker 1: And just as this offer sent the Internet into a spin,
Speaker 1: open Ai CEO Sam Altman responded on X no, thank
Speaker 1: you to your offer, but we will buy Twitter for
Speaker 1: nine point seventy four billion if you want just a reminder,
Speaker 1: Elon Musk acquired X for forty four billion dollars in
Speaker 1: twenty twenty two. Ouch and be man. Well, this might
Speaker 1: just look like another tech profud it actually highlights the
Speaker 1: challenge of scaling nonprofit tech businesses. So what's the key
Speaker 1: learning here? Balancing mission and money is one of the
Speaker 1: trickiest challenges for fast growing companies. Multiple well known tech
Speaker 1: companies started out as mission driven nonprofits but later shifted
Speaker 1: to for profit models in order to scale the business
Speaker 1: and be man This can create a heap of tension
Speaker 1: for employees, the comp the directors, and the financial backers
Speaker 1: of these companies and Jaseyboy. OpenAI ain't the first company
Speaker 1: to face this non profit verse profit conundrum. Nope. Mozilla,
Speaker 1: which is the web browser. They started as a nonprofit initiative,
Speaker 1: but then it created a for profit subsidiary called Mozilla
Speaker 1: Corporation to compete better with Google Chrome and Microsoft Edge.
Speaker 1: Then there's also deep Mind, which was an AI research
Speaker 1: lab originally focused on ethical AI development, which was acquired
Speaker 1: by Google for four hundred million US dollars in twenty fourteen.
Speaker 1: So b man, it'll be interesting to see if open
Speaker 1: ai will prioritize cash or return to its original mission.
Speaker 1: Flux maam the ASEX two hundred indexecute is an all
Speaker 1: time high at the end of January and has continued
Speaker 1: to go up and up and up. We take a
Speaker 1: look at the four best performing ASX stocks in January
Speaker 1: twenty twenty five, and you might be surprised who's up there.
Speaker 1: To make sure to check out the Flux out to
Speaker 1: see the winners from January. Thanks for listening and we'll
Speaker 1: see you on for Friday