Latest / What the Flux / Coles gives Woolworths a beating | Star's last roll of the dice | Nvidia's $500 billion decline

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Coles gives Woolworths a beating | Star's last roll of the dice | Nvidia's $500 billion decline · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and Justin and it Monday, the third of.
• 0:09
  Speaker 1: March, Juzzy Boy, Qatar Airways and Virgin Australia have officially
• 0:12
  Speaker 1: had their marriage approved by the A Triple C. Qatar
• 0:15
  Speaker 1: Airways will now own a twenty five percent steak in
• 0:18
  Speaker 1: Virgin Australia and this could create a much more competitive
• 0:21
  Speaker 1: flight deals fight Aussies and Qantas has responded with the
• 0:24
  Speaker 1: words we always said, we welcome competition. Game officially on
• 0:29
  Speaker 1: block dam.
• 0:30
  Speaker 2: As we roll over into the month of March, we
• 0:32
  Speaker 2: have a brand new Academy that we're very proud to launch.
• 0:35
  Speaker 2: It's all about understanding Super. There's more than three and
• 0:37
  Speaker 2: a half trillion dollars stored in Super across Australia and
• 0:41
  Speaker 2: most people don't even know how much money they've got
• 0:43
  Speaker 2: or where it sits. So we cover it all in
• 0:45
  Speaker 2: the Fox Academy this month with prizes and leaderboards. View
• 0:48
  Speaker 2: to wins. Make sure to check out the Flex Academy
• 0:50
  Speaker 2: this month.
• 0:50
  Speaker 1: Three insightful stories Today Juzzy Boy, Let's do it for
• 0:53
  Speaker 1: our first. Coles has announced a jump in earnings to
• 0:56
  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.
• 1:02
  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
• 2:25
  Speaker 1: a competitor's mishap.
• 2:27
  Speaker 2: Juzzy boy, yep. Remember when Optors suffered their major data breach.
• 2:30
  Speaker 1: I do a casual nine point eight million customers had
• 2:33
  Speaker 1: their data compromised. If my memory served me in the
• 2:36
  Speaker 1: correct fashion, yep.
• 2:37
  Speaker 2: And in the following months there were tens of thousands
• 2:39
  Speaker 2: of Optics customers that moved over to Telstra.
• 2:41
  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
• 2:46
  Speaker 2: a temporary blit. Foolies, where the customers have taken their
• 2:49
  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
• 3:03
  Speaker 2: going on here.
• 3:04
  Speaker 1: So, Starr Entertainment Group is the ASX as said, gambling
• 3:07
  Speaker 1: and entertainment company.
• 3:08
  Speaker 2: You may know Star Entertainment Group from its casinos, the
• 3:10
  Speaker 2: Star Bricks Vegas, the Star Gold Coast, and the Star Sydney.
• 3:13
  Speaker 1: Now, once upon a time, Star Wars a high roll
• 3:16
  Speaker 1: of the casino world. It was worth more than five
• 3:18
  Speaker 1: billion dollars.
• 3:19
  Speaker 2: But then the house of cards came crashing down.
• 3:21
  Speaker 1: Yeap, major scandals, including a money laundering hit, and they've
• 3:25
  Speaker 1: been on a losing streak ever since.
• 3:27
  Speaker 2: So, b Man, here's what's going on. Star Wars meant
• 3:29
  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
• 3:37
  Speaker 2: financial statements.
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  Speaker 1: Because they weren't confident that the company could pay their
• 3:41
  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
• 3:47
  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
• 3:56
  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.
• 4:02
  Speaker 1: Now, for Star Entertainment, not being able to secure funding
• 4:05
  Speaker 1: means they won't be able to pay short term debts
• 4:08
  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
• 4:16
  Speaker 1: board signs off on these statements.
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  Speaker 2: If they did, it would be a positive signal for
• 4:20
  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
• 4:25
  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.
• 4:34
  Speaker 1: Or seven percent of its peak value.
• 4:37
  Speaker 2: For our third and final story, in Vidia suffered a
• 4:40
  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.
• 4:55
  Speaker 1: Be Man YEP started in nineteen ninety three with the
• 4:58
  Speaker 1: goal to design really sophisticated computer chips for graphics in
• 5:03
  Speaker 1: video games. How about that. But by two thousand and
• 5:05
  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
• 5:11
  Speaker 1: key clients.
• 5:12
  Speaker 2: In fact, the Man. In the last two years, in
• 5:14
  Speaker 2: video share price has jumped by more than five hundred
• 5:16
  Speaker 2: and twenty five percent, and now in Video announced its
• 5:19
  Speaker 2: quarterly revenue jump seventy four percent compared to this time
• 5:22
  Speaker 2: last year. Sounds pretty good, and it did beat expectations
• 5:26
  Speaker 2: by nearly three percent. But next minute, in Video share
• 5:28
  Speaker 2: price dropped more than eight percent, or roughly five hundred
• 5:31
  Speaker 2: billion US dollars.
• 5:32
  Speaker 1: And for those playing at home, yes, that's nearly two
• 5:34
  Speaker 1: times the GDP of New Zealand.
• 5:37
  Speaker 2: Wow. So what is the key learning here.
• 5:39
  Speaker 1: With rapid growth comes rapidly growing expectations.
• 5:42
  Speaker 2: You see, a man. The reason for the selloff in
• 5:44
  Speaker 2: video shares is because their results didn't beat expectations by
• 5:47
  Speaker 2: as much as usual.
• 5:48
  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
• 5:56
  Speaker 2: two point eight four percent means it was the smallest
• 5:59
  Speaker 2: earnings beat since twenty twenty two.
• 6:01
  Speaker 1: But does a boy. Compared to other tech companies in
• 6:03
  Speaker 1: the US, it's still smashed their quarterly results.
• 6:05
  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.
• 6:13
  Speaker 2: But be man as the second most valuable company in
• 6:16
  Speaker 2: the whole wide world. Out of nowhere, it seems like
• 6:18
  Speaker 2: Invidia is currently held to a different standard. Yeah, fluxdam.
• 6:21
  Speaker 2: If your super is sitting in one or two or
• 6:23
  Speaker 2: even three accounts and you don't know how much is
• 6:25
  Speaker 2: in there or how much your return is, you need
• 6:27
  Speaker 2: to do the Flox Academy this month. It could be
• 6:29
  Speaker 2: one of the best investments of your time and potentially
• 6:31
  Speaker 2: money that you ever made. To make sure to download
• 6:33
  Speaker 2: the Flux app and check out the Super Academy this month.
• 6:35
  Speaker 1: Thanks for listening, and we'll see you on Wednesday.