Latest / What the Flux / Booktopia's final chapter | Domino's cheesy challenge | Tesla shares up by 10%, but...

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Booktopia's final chapter | Domino's cheesy challenge | Tesla shares up by 10%, but... · What the Flux

• 0:05
  Speaker 1: This is what the flux. I'm brad, I'm justin and
• 0:08
  Speaker 1: it's Friday, the fifth of July.
• 0:10
  Speaker 2: If your super is with aware Super Australian Retirement Trust
• 0:13
  Speaker 2: or even AMP, then you are entitled to a big
• 0:15
  Speaker 2: grin on your face this Friday. These super funds delivered
• 0:18
  Speaker 2: returns over eleven percent in the last financial year. That's
• 0:21
  Speaker 2: according to super ratings. Compare that to the median balance
• 0:25
  Speaker 2: super fund return of eight point eight percent.
• 0:27
  Speaker 1: Didn't expect those three p man. Speaking of big grins, though,
• 0:30
  Speaker 1: we want to give another Flex down member a reason
• 0:33
  Speaker 1: to grin from eat with our weekly quiz Quick Sticks
• 0:36
  Speaker 1: and today we're mixing it up at all, giving eight
• 0:38
  Speaker 1: one hundred dollars. But there are five questions to answer,
• 0:41
  Speaker 1: so make sure to download the Fox app, turn on
• 0:43
  Speaker 1: your notifications and be the first to answer them all correctly.
• 0:46
  Speaker 1: Be your chance to win three.
• 0:48
  Speaker 2: Smiley stories today Juzzy Boy for our first book, Topia
• 0:52
  Speaker 2: has gone into voluntary administration after a battle to cope
• 0:55
  Speaker 2: with its financial struggles.
• 0:56
  Speaker 1: The plot is sticking here, be man, so what is
• 0:58
  Speaker 1: going on? Well, Dozy Boy.
• 0:59
  Speaker 2: Book Topia is Australia's largest online bookstore, founded in two
• 1:03
  Speaker 2: thousand and four and listed on the ASX in December
• 1:05
  Speaker 2: twenty twenty.
• 1:06
  Speaker 1: It also owns the bookstore chain Angus and Robertson Ah
• 1:09
  Speaker 1: that old chestnut now be Man. Book Toopia has been
• 1:12
  Speaker 1: doing it pretty rough lately. It's cut ninety jobs in
• 1:14
  Speaker 1: the past eighteen months to save on.
• 1:16
  Speaker 2: Costs, and in its most recent half year earnings update,
• 1:19
  Speaker 2: book Topia announced sixteen point seven million dollars in losses and.
• 1:22
  Speaker 1: A twenty two percent drop in revenue for the half year.
• 1:24
  Speaker 1: Now Dazi boy.
• 1:25
  Speaker 2: Roughly two weeks ago, book Topia entered a shared trading
• 1:28
  Speaker 2: halt to try and sort out its financial situation, but now.
• 1:31
  Speaker 1: Book Tobia's struggled to secure additional funding to stay afloat,
• 1:34
  Speaker 1: and it's gone into voluntary administration.
• 1:37
  Speaker 2: Topia reckons it's the poor economic conditions and reduced consumer
• 1:40
  Speaker 2: spending that has led to all of this.
• 1:42
  Speaker 1: But be Man will book Topia's morning. It's crumbling business.
• 1:45
  Speaker 1: There's someone in the shadows eyeing it's left over. Who
• 1:48
  Speaker 1: I'm interested? What is the key learning here? A company
• 1:51
  Speaker 1: may go under, but its pieces can still hold value.
• 1:54
  Speaker 2: Book Toopia might not be in a position to operate anymore,
• 1:57
  Speaker 2: but its assets could still be useful and valuable to
• 2:00
  Speaker 2: someone else.
• 2:01
  Speaker 1: In fact, as book Toopia has gone into administration, Dimmicks
• 2:04
  Speaker 1: has been watching on from the sideline.
• 2:06
  Speaker 2: And it's been considering purchasing some of Booktopia's assets, especially
• 2:10
  Speaker 2: its fulfillment and distribution centers and be man. Given the
• 2:12
  Speaker 2: two operate in the same industry selling books, it's not
• 2:15
  Speaker 2: hard for Dimicks to poach book Toopia's assets and use
• 2:18
  Speaker 2: them to grow its own business. And jiboy, We've seen
• 2:20
  Speaker 2: this before with Dick Smith.
• 2:22
  Speaker 1: Yep, Dick Smith couldn't survive, but it's intellectual property and
• 2:25
  Speaker 1: its online businesses with valuable assets to the company that
• 2:28
  Speaker 1: acquired it Coging So jaziboy.
• 2:30
  Speaker 2: While this may be the end of the road for Booktopia,
• 2:32
  Speaker 2: the systems and the products that built could find a
• 2:35
  Speaker 2: new life with a new owner. For our second story,
• 2:38
  Speaker 2: Domino's Pizza is expecting its twenty twenty four profit estimates
• 2:42
  Speaker 2: to be seriously hurt thanks to the inflation of one
• 2:44
  Speaker 2: of its most valuable ingredients. Don't even think about skipping
• 2:48
  Speaker 2: out on the cheese, Dominoes.
• 2:50
  Speaker 1: What the mozzarella is going on here? Okay, so we
• 2:53
  Speaker 1: know Domino's Pizza the asxisted company. It's had a wild
• 2:56
  Speaker 1: ride over the past few years, yep.
• 2:57
  Speaker 2: But share price has jumped all the way to one
• 3:00
  Speaker 2: hundred and fifty nine dollars during peak pandemic, and it's
• 3:03
  Speaker 2: come back down to earth to thirty five dollars.
• 3:05
  Speaker 1: A boy, now does you? Boy?
• 3:05
  Speaker 2: You obviously know that domino serves all sorts of delicious
• 3:08
  Speaker 2: cheesy pizzas and delicious cheesy melts like.
• 3:11
  Speaker 1: The barbecue meat Lovers, the Mega meat Lovers, the Lost
• 3:13
  Speaker 1: and of course the double bacon cheeseburgerizza.
• 3:16
  Speaker 2: Now, I don't want to name every ingredient in these pizzas,
• 3:18
  Speaker 2: but I can tell you one thing, my friend, they
• 3:20
  Speaker 2: all have a heck of a lot of cheese in them.
• 3:22
  Speaker 1: And now, be Man, Dominoes is facing a new challenge
• 3:25
  Speaker 1: because the price of cheese is up nearly forty percent
• 3:28
  Speaker 1: since the end.
• 3:28
  Speaker 2: Of March, and as a result, investors and analysts are
• 3:31
  Speaker 2: expecting Domino's profit to be flatter.
• 3:33
  Speaker 1: Then they're colluten free bases, and I know them well.
• 3:35
  Speaker 1: In fact, be Man, Domino's basket of commodity inputs is
• 3:38
  Speaker 1: now back at the highest level since November twenty twenty two,
• 3:41
  Speaker 1: according to Baron.
• 3:42
  Speaker 2: Joey, and with consumers also cutting back on spending. This
• 3:45
  Speaker 2: is not a combo that leads to cheese tasting pizzas.
• 3:48
  Speaker 1: So what is the key learning here?
• 3:50
  Speaker 2: Commodity prices is one of the major sources of business
• 3:53
  Speaker 2: risk that can up end hospitality company.
• 3:55
  Speaker 1: Get this, Food costs on average account the thirty three
• 3:58
  Speaker 1: percent of restaurants in higher revenue.
• 4:00
  Speaker 2: So jesboy, When a company experiences price inflation on essential
• 4:04
  Speaker 2: commodities like cheese, it can majorly impact their costs and
• 4:07
  Speaker 2: profit margins.
• 4:08
  Speaker 1: And be man, I hear what you're saying. Why don't
• 4:10
  Speaker 1: they just increase their pizza prices? Not sure, I said that,
• 4:12
  Speaker 1: Jasey boy. But go on, well, there's a limit to
• 4:14
  Speaker 1: how much consumers are willing to pay before sales volume
• 4:17
  Speaker 1: starts to decline. And that's exactly what happened last year.
• 4:20
  Speaker 2: They increased their prices and profits dropped by more than
• 4:23
  Speaker 2: twenty percent.
• 4:23
  Speaker 1: So be man. Dominos finds itself between a crust and
• 4:26
  Speaker 1: a hard place because cheese is the core topping to
• 4:29
  Speaker 1: any good pizza.
• 4:30
  Speaker 2: For our third and final story, Tesla's investors shut up
• 4:33
  Speaker 2: its shares by ten percent after its sales fell by
• 4:36
  Speaker 2: less than expected last quarter and it pulled an energy
• 4:39
  Speaker 2: rabbit out of the hat.
• 4:40
  Speaker 1: Muski the magician always, sometimes often or sometimes always has
• 4:44
  Speaker 1: strange things up your sleeve. So what's going on here? Well, Jaseyboy.
• 4:47
  Speaker 2: Tesla's shot onto the electric vehicle scene back in two
• 4:49
  Speaker 2: thousand and eight with its first car, the roadstre and since.
• 4:52
  Speaker 1: Then electric vehicle race has heated up faster than an
• 4:54
  Speaker 1: ice cube melting on a hot sidewalk.
• 4:57
  Speaker 2: We've got Tesla, but also byd Volkswagen General Motors. Have
• 5:01
  Speaker 2: you heard of still Ant's Uzzy Boy, and pretty much
• 5:03
  Speaker 2: every other brand trying their hand here and be man.
• 5:06
  Speaker 1: That's meant Tesla has been forced to drop its car
• 5:08
  Speaker 1: prices three separate times in April and May this year,
• 5:11
  Speaker 1: just to clear a backlog of their stock. Surely you
• 5:13
  Speaker 1: just do one big cut, I know, but be man.
• 5:15
  Speaker 1: Even so, Tesla has still seen its sales decline in
• 5:17
  Speaker 1: the most recent quarter by four point eight percent, which
• 5:20
  Speaker 1: is still less than the eight point five percent fall
• 5:23
  Speaker 1: in the first quarter and actually less than investors expected.
• 5:26
  Speaker 1: But b man. Tesla's saying, hey, did you know what
• 5:28
  Speaker 1: energy storage business for power batteries is booming, and we
• 5:32
  Speaker 1: have an autonomous Robotaxi coming out soon, and we have
• 5:34
  Speaker 1: a robot coming called Optimists, and we're spending ten billion
• 5:37
  Speaker 1: US dollars on AI research this year. Why not next minute?
• 5:40
  Speaker 1: Tesla's share price is up ten percent off the back
• 5:42
  Speaker 1: of this new potential. Ah huh, So what is the
• 5:44
  Speaker 1: key learning here? With emerging technologies, valuations can seem sky high,
• 5:48
  Speaker 1: but there's often a reason behind the high.
• 5:50
  Speaker 2: You see, juzzy boy investors often pay a premium for
• 5:53
  Speaker 2: the potential of future profits rather than current performance.
• 5:56
  Speaker 1: For example, Gouz Minigomez's current price to earnings ratio PE
• 6:00
  Speaker 1: ratio is over five hundred because of its big promises
• 6:03
  Speaker 1: for the future.
• 6:04
  Speaker 2: Now, back in twenty twenty, Tesla's PE ratio was over
• 6:07
  Speaker 2: eleven hundred.
• 6:08
  Speaker 1: That is real high.
• 6:09
  Speaker 2: But since then it's PE ratio dropped to under thirty
• 6:12
  Speaker 2: five because Tesla's electric vehicles aren't that unique or appealing anymore.
• 6:15
  Speaker 1: But now its ventures into AI and energy storage present
• 6:19
  Speaker 1: new opportunities that could redefine the.
• 6:21
  Speaker 2: Sector, and the anticipation of growth in these sectors is
• 6:24
  Speaker 2: a reason why Tesla investors boosted its share price.
• 6:27
  Speaker 1: By ten percent. Fox Am, there is no better way
• 6:29
  Speaker 1: to start the weekend that our one hundred bucks cash
• 6:31
  Speaker 1: into your bank account, and we're doing it this week
• 6:33
  Speaker 1: in our weekly quiz Quick sticks to make sure to
• 6:36
  Speaker 1: download the Flux app, turn your notifications on, and use
• 6:38
  Speaker 1: your fast fingers. Thanks for listening, and we'll see you
• 6:41
  Speaker 1: on Monday