Latest / What the Flux / Mecca makes the billion-dollar club | Westpac faces $100 million fine | Elon Musk's big test

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Mecca makes the billion-dollar club | Westpac faces $100 million fine | Elon Musk's big test · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Briday. There's sixth
• 0:08
  Speaker 2: of June.
• 0:09
  Speaker 1: The ASX has had its first company to hit a
• 0:11
  Speaker 1: three hundred billion dollar valuation momentarily. Combank shares jump three
• 0:15
  Speaker 1: and a half percent over the past week, which tipped
• 0:17
  Speaker 1: it over the mark for a very hot minute, Juzzy boy,
• 0:19
  Speaker 1: and that means Combank is now nearly worth more than
• 0:22
  Speaker 1: A and Z and Westpac and NAB combine washing the.
• 0:26
  Speaker 2: Competition the man. We all know that ETFs are very
• 0:29
  Speaker 2: very hot right now, fourteen trillion dollars worth of ets globally.
• 0:33
  Speaker 2: That's why we're so excited with this month's Academy, which
• 0:36
  Speaker 2: goes through everything you need to know about investing in ets,
• 0:39
  Speaker 2: what to look out for, buying and selling ETFs, even
• 0:42
  Speaker 2: the different types of ETFs to get into. So if
• 0:44
  Speaker 2: you want to learn more about ETFs and have the
• 0:46
  Speaker 2: chance to win cash prizes, make sure to download the
• 0:48
  Speaker 2: Flux app and check out the Academy this month.
• 0:50
  Speaker 1: Three riveting stories today, jus boy, let's do it for
• 0:54
  Speaker 1: our first mecha. The Australian retailer has officially joined the
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  Speaker 1: billion dollar club after clocking one point two billion dollars
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  Speaker 1: in sales.
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  Speaker 2: Self care really sells, b Man, it really sells. So
• 1:05
  Speaker 2: tell me what's going on here?
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  Speaker 1: Okay? So Mecha was founded in Melbourne in nineteen ninety seven.
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  Speaker 2: Back when Savage Garden was dropping hit after hit.
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  Speaker 1: It now has over one hundred and ten retail stores
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  Speaker 1: in Australia and New Zealand and about seven thousand staff
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  Speaker 1: and it's.
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  Speaker 2: Become the go to store for all beauty bus including yourself,
• 1:21
  Speaker 2: YEP and be Man. Although Mecha is private, it's considered
• 1:24
  Speaker 2: a large company, so it needs to lodge its financial
• 1:26
  Speaker 2: results with ASEK.
• 1:27
  Speaker 1: Which can be accessed by the public.
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  Speaker 2: So now, be Man. Mecha's just reported a record revenue
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  Speaker 2: of one point two billion dollars for twenty twenty three,
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  Speaker 2: up from nine hundred and seventy one million in twenty
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  Speaker 2: twenty two, and in.
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  Speaker 1: That year it's net profit also increased to twenty seven
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  Speaker 1: point eight mil And.
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  Speaker 2: Why are we talking about twenty twenty three financial results
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  Speaker 2: right now? Be Man?
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  Speaker 1: Well, juzzyboy, because Mecha filed its financials almost one year late,
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  Speaker 1: which does have ACIC not happy in January, So be man.
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  Speaker 2: If that's their revenue figure from twenty twenty three, you
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  Speaker 2: can only imagine how much they've grown since.
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  Speaker 1: But Juzy Boy being a private company means meche can
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  Speaker 1: get away with a lot more than its public counterparts.
• 2:04
  Speaker 2: So what is the key learning here?
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  Speaker 1: When the company is private, it doesn't owe anything to
• 2:09
  Speaker 1: anyone really except maybe the text office.
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  Speaker 2: No updates on earnings, no market guidance, and certainly no
• 2:14
  Speaker 2: shareholder calls.
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  Speaker 1: And Judsey Boy, it's even better when the only people
• 2:18
  Speaker 1: calling the shots are the founders or owners, and this
• 2:21
  Speaker 1: can be a huge strategic competitive advantage.
• 2:23
  Speaker 2: In fact, then a EORSA reported in the UK by
• 2:25
  Speaker 2: PTERWC down the private companies achieved an internal rate of
• 2:29
  Speaker 2: return nearly double that of the top companies on the
• 2:32
  Speaker 2: European Stock.
• 2:32
  Speaker 1: Exchange, and comparing Mecca to Adore Beauty really highlights a
• 2:36
  Speaker 1: big difference, does that Juzzy Boy does.
• 2:38
  Speaker 2: The door shares listed at six dollars ninety two per
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  Speaker 2: share in twenty twenty one and then our sitting at
• 2:43
  Speaker 2: the Lulu price of seventy one cents per share. So
• 2:46
  Speaker 2: right now Mecha is laughing all the way to the
• 2:48
  Speaker 2: checkout for our second story. Westpac's former home loan brand
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  Speaker 2: RAMS is in hot water with ASK after allegedly it
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  Speaker 2: enabled years of dodgy home loan behavior.
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  Speaker 1: Not good stuff coming out of this one, juzzy boy,
• 3:01
  Speaker 1: So tell me what's going on.
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  Speaker 2: RAMS Home Loan is a homeland Lander that started back
• 3:04
  Speaker 2: in nineteen ninety one.
• 3:05
  Speaker 1: And for those playing at home, it stands for Registered
• 3:08
  Speaker 1: Australian Mortgage Security Just stick with RAMS, and it was
• 3:12
  Speaker 1: acquired by west back in two thousand and seven for
• 3:14
  Speaker 1: one hundred and forty million bucks but.
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  Speaker 2: Be man at last year Westpac closed RAMS to new
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  Speaker 2: business after I found out some misconduct was going on.
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  Speaker 1: And if that wasn't bad enough, ACIK is now suing
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  Speaker 1: RAMS for systemic misconduct between twenty nineteen and twenty twenty three.
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  Speaker 2: Now be Man In particular, the case is focused on
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  Speaker 2: staff who fudged customer financial data to help them get
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  Speaker 2: loans across the line.
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  Speaker 1: We're talking bake pay slips or unexplained changes to customer
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  Speaker 1: income and expenses.
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  Speaker 2: The crazy part is that some customers didn't even know
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  Speaker 2: that the RAMS staff were doing this.
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  Speaker 1: Imagine applying for a modest mortgage and suddenly you're a
• 3:47
  Speaker 1: CFO earning five hundred k.
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  Speaker 2: Surprise, so b man, RAMS and We're back have admitted
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  Speaker 2: liability and already forked out more than seven and a
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  Speaker 2: half mil to affected customer.
• 3:56
  Speaker 1: But juzzy boy, there's more to come from ask.
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  Speaker 2: Yep, and this sent the first time that live loans
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  Speaker 2: have been a problem in the housing market.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Layer loans? Home loans approved using false financial.
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  Speaker 1: Information could be made up, pace lips, could be false
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  Speaker 1: job titles or magically disappearing expenses.
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  Speaker 2: In the RAMS case, ASK alleges that RAMS staff submitted
• 4:16
  Speaker 2: fake documents to help borrows qualify for loans.
• 4:19
  Speaker 1: Check another one hundred and fifty k on your salary
• 4:21
  Speaker 1: here to borrow more.
• 4:22
  Speaker 2: Update your job from business analysts to vice president Business.
• 4:25
  Speaker 1: Analysts and tudiboy. Interestingly, Westpac was caught breaching the lending
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  Speaker 1: laws itself back in twenty eighteen.
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  Speaker 2: That was when it approved over ten thousand home loans
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  Speaker 2: to borrowers who may not have been able to afford them.
• 4:36
  Speaker 1: And while that case was settled, Westpac could face a
• 4:38
  Speaker 1: maximum fine more than one hundred million dollars for RAMS breaches.
• 4:42
  Speaker 1: For our third and final story, Elon Musk's Ai company
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  Speaker 1: Xai is launching a three hundred million dollars secondary share sale.
• 4:50
  Speaker 2: Elon must taking a break from political rans and memoors.
• 4:53
  Speaker 2: V Man tell me more.
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  Speaker 1: Well, for those playing a little bit of catch up here,
• 4:56
  Speaker 1: Elon is still the universe's richest human yeap, previously.
• 4:59
  Speaker 2: Behind PayPal, and now he's behind Tesla and SpaceX and
• 5:02
  Speaker 2: Neurallink and most recently Xai.
• 5:04
  Speaker 1: After stepping down from Doje, Musk is making a big
• 5:07
  Speaker 1: comeback to the tech world.
• 5:08
  Speaker 2: Now, be Man. You may remember, Musk founds an AI
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  Speaker 2: startup called Xai back in twenty twenty.
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  Speaker 1: Three to compete against open Ai and Deep seek the
• 5:16
  Speaker 1: bigger AI rivals and Beman.
• 5:18
  Speaker 2: Similar to open AI's chat GBT, Xai has an AI
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  Speaker 2: chatbot called grock.
• 5:22
  Speaker 1: Rewind to March this year, Musk merged Xai with his
• 5:25
  Speaker 1: social platform x formerly known as Twitter, in a private takeover.
• 5:29
  Speaker 2: That's right, he bought his own company. With his other company.
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  Speaker 1: He slapped a one hundred and thirteen billion dollar valuation
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  Speaker 1: on the whole thing.
• 5:36
  Speaker 2: Except a man, no actual cash changed hands.
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  Speaker 1: So now he's launching a three hundred million dollar secondary
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  Speaker 1: share sale for Xai.
• 5:43
  Speaker 2: Which means Xai employees can cash out by selling their
• 5:46
  Speaker 2: shares to fresh investors.
• 5:47
  Speaker 1: And will give us a sneak peek at what the
• 5:49
  Speaker 1: market really thinks Xai is worth.
• 5:52
  Speaker 2: So what is the key learning here?
• 5:54
  Speaker 1: Private companies can claim they're worth billions, but it really
• 5:56
  Speaker 1: means not much until someone else is willing to throw
• 6:00
  Speaker 1: real money at the company.
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  Speaker 2: You see, be man. When no money changes hands, evaluation
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  Speaker 2: is pretty much just a number on a spreadsheet, But when.
• 6:06
  Speaker 1: You investors agree to buy shares at a price, it
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  Speaker 1: gives the valuation more legitimacy.
• 6:11
  Speaker 2: That's the difference between a potential value and a market
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  Speaker 2: tested one.
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  Speaker 1: And jazzy boy. We know that Elon Musk has a
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  Speaker 1: tendency to be a tad flippant with valuations, so be man.
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  Speaker 2: If Musk is able to pull off this valuation as
• 6:22
  Speaker 2: part of the secondary share sale, it might actually suggest
• 6:25
  Speaker 2: there's some logic to this price.
• 6:26
  Speaker 1: That if you can't, employees and investors will be left
• 6:28
  Speaker 1: holding the grock bag.
• 6:31
  Speaker 2: As you roll into the weekend, it's hard to think
• 6:33
  Speaker 2: about doing some productive things. If you're looking too start
• 6:35
  Speaker 2: investing but have no idea what to do. We have
• 6:38
  Speaker 2: got you in the Flux Academy this month. This course
• 6:40
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• 6:43
  Speaker 2: about them, and how to actually use them to build
• 6:45
  Speaker 2: a diversified portfolio. Plus you can win up to five
• 6:48
  Speaker 2: hundred dollars in prices. Make sure to download the Flux
• 6:50
  Speaker 2: app and check out the academy.
• 6:52
  Speaker 1: Thanks for listening, and yes, we'll see you on Monday.