Latest / What the Flux / GYG's spicy entry onto the ASX | Netflix launches "Netflix Houses" | City Chic's 30% sales drop

Transcript

GYG's spicy entry onto the ASX | Netflix launches "Netflix Houses" | City Chic's 30% sales drop · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Bradan, I'm justin and it's Friday, the twenty first
• 0:09
  Speaker 2: of June.
• 0:09
  Speaker 1: Flax fam.
• 0:10
  Speaker 3: Have you ever wondered if one supermarket here in Australia
• 0:13
  Speaker 3: is actually cheaper than any of the others I have? Well,
• 0:16
  Speaker 3: the conclusive evidence is in and Choice, the Consumer Advocacy
• 0:21
  Speaker 3: Group convert the price of fourteen everyday supermarket items. We're
• 0:24
  Speaker 3: talking things like apples and flour, wheatbits, butter Lo and
• 0:27
  Speaker 3: behold Audi. It was the cheapest by twenty five percent.
• 0:31
  Speaker 1: I knew it.
• 0:31
  Speaker 2: I've been saying it forever. Uh huh, you have saving money,
• 0:34
  Speaker 2: be man. We are nine days away from the end
• 0:36
  Speaker 2: of this financial year, which means nine more days to
• 0:39
  Speaker 2: make purchases that can be tax deductible. In the Flux app,
• 0:42
  Speaker 2: we show you which items you can purchase and.
• 0:44
  Speaker 1: How much you can claim, so make sure to check
• 0:46
  Speaker 1: it out.
• 0:46
  Speaker 3: Three world class stories today, Uzzy boy, let's do it
• 0:50
  Speaker 3: for our first. Guzman Egomez publicly listed yesterday in the
• 0:55
  Speaker 3: asx's biggest float over three years.
• 0:57
  Speaker 1: And what a start, be Man.
• 0:58
  Speaker 2: The share price hit harder than hungover Brecky Burrito with
• 1:01
  Speaker 2: extra helimeters.
• 1:02
  Speaker 1: So tell me, what all right, juz boy?
• 1:04
  Speaker 3: You and HD spoke about the GYG story a few
• 1:06
  Speaker 3: weeks ago.
• 1:07
  Speaker 1: Pretty crazy story, this one.
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  Speaker 2: Since launching in two thousand and six, GYG has expanded
• 1:11
  Speaker 2: to over two hundred.
• 1:12
  Speaker 3: And ten restaurant We're talking in Australia, in Singapore, in Japan,
• 1:16
  Speaker 3: in the US.
• 1:16
  Speaker 1: Their tacos can travel and be man gooz Minigo.
• 1:19
  Speaker 2: Man's first plan to raise about two hundred and thirty
• 1:22
  Speaker 2: five million dollars as part of this flow.
• 1:24
  Speaker 3: But with investor interest spicier than their hottest salsa, GYG
• 1:28
  Speaker 3: turned up the heat.
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  Speaker 2: They ended up raising three hundred and thirty five million
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  Speaker 2: dollars for GYG.
• 1:32
  Speaker 3: As well as its investors, and yesterday it shares open
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  Speaker 3: at thirty bucks on the ASX.
• 1:36
  Speaker 2: That's eight dollars above its listing price, more than thirty
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  Speaker 2: five percent higher.
• 1:40
  Speaker 3: Holy Guacamolely, so why did this listing pop off so hard?
• 1:44
  Speaker 1: Well, be Man, It's fair to say this was a
• 1:46
  Speaker 1: very tight share register.
• 1:48
  Speaker 3: The top twenty shareholders of GYG owned more than eighty
• 1:51
  Speaker 3: five percent of this share.
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  Speaker 2: Meaning there's not a lot of liquidity to get a
• 1:54
  Speaker 2: fair market price.
• 1:56
  Speaker 1: So what is the key learning here?
• 1:57
  Speaker 2: Liquidity in the share market is how easily and how
• 2:00
  Speaker 2: quickly shares of a company can be bought or sold
• 2:02
  Speaker 2: without significantly affecting the share price. When there's a lot
• 2:05
  Speaker 2: of liquidity, it means lots of shares are being traded,
• 2:07
  Speaker 2: which usually results in more stable prices. But when most
• 2:10
  Speaker 2: of the shares are held by a few investors, the
• 2:12
  Speaker 2: amount of.
• 2:13
  Speaker 1: Shares available to the public are much fewer, like in
• 2:15
  Speaker 1: the case of G to the Y to the g get.
• 2:18
  Speaker 2: This according to COMSEC, at the time of listing yesterday,
• 2:20
  Speaker 2: there were five hundred and twenty four buyers that wanted
• 2:23
  Speaker 2: to buy the stock compared to forty nine sellers, and
• 2:25
  Speaker 2: with fewer shares on the market, each buy or sell
• 2:27
  Speaker 2: order can have a bigger impact on the stock price,
• 2:30
  Speaker 2: so be man. Some investors believe the true test for
• 2:32
  Speaker 2: GYG share price will be when it's major investors are
• 2:35
  Speaker 2: allowed to sell their shares. For our second story, Netflix
• 2:39
  Speaker 2: is ramping up its physical world presence with two new
• 2:42
  Speaker 2: Netflix houses that let shoppers feel like they're inside the
• 2:45
  Speaker 2: world of their favorite show.
• 2:47
  Speaker 3: Wow, Netflix and Chill turning into Netflix and Shop tell
• 2:50
  Speaker 3: me more.
• 2:50
  Speaker 1: Okay, so we know.
• 2:51
  Speaker 2: Netflix actually began in nineteen ninety seven as a DVD
• 2:54
  Speaker 2: by male movie rental service.
• 2:56
  Speaker 3: Aha, But since then it's pretty much evolved into a
• 2:58
  Speaker 3: digital on demand serve. And with this digital on demand service,
• 3:02
  Speaker 3: it's grown to nearly two hundred and seventy million subscribers worldwide.
• 3:05
  Speaker 1: But does woit? Now?
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  Speaker 3: Netflix is switching back to the physical world by launching
• 3:09
  Speaker 3: what it is calling Netflix Houses.
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  Speaker 1: And what is this Netflix house you speak of?
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  Speaker 3: Well, the idea is that fans of Netflix shows can
• 3:16
  Speaker 3: get immersive experiences of their shows.
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  Speaker 2: Literally get a taste of their favorite shows through the
• 3:21
  Speaker 2: food and drinks that are sold in the experiences.
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  Speaker 3: So it could be scones and high tee for Bridgitton
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  Speaker 3: themed experiences.
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  Speaker 2: Exactly, or baby Reindeer experiences hopefully not. And although this
• 3:32
  Speaker 2: isn't Netflix's first physical experience, it.
• 3:34
  Speaker 3: Is the biggest so far and really shows how much
• 3:37
  Speaker 3: Netflix still values the physical world to promote it shows.
• 3:40
  Speaker 1: So what is the key lenning here?
• 3:41
  Speaker 3: Netflix is borrowing straight out of Disney's playbook.
• 3:45
  Speaker 2: Like Disney, Netflix has grown a massive fan base for
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  Speaker 2: its original content.
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  Speaker 3: We're talking characters from shows like Bridget and The Squid Game,
• 3:52
  Speaker 3: Stranger Things, But.
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  Speaker 2: Unlike Disney, Netflix hasn't managed to turn that into a
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  Speaker 2: whole separate business division.
• 3:58
  Speaker 3: Might I remind you of Disney's cash cow, Disneyland?
• 4:02
  Speaker 2: I do remember that, which, by the bye, generated over
• 4:04
  Speaker 2: thirty two billion US dollars in revenue for Disney just
• 4:07
  Speaker 2: in the last financial year.
• 4:08
  Speaker 3: Or what about this one that's come across my desk, Mattel,
• 4:11
  Speaker 3: who has gone in the opposite direction.
• 4:13
  Speaker 2: Yep, they've turned a popular physical product like Barbie into
• 4:16
  Speaker 2: a movie screen superstar.
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  Speaker 3: We're talking more than one point four billion US dollars
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  Speaker 3: in box office revenues.
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  Speaker 2: So now, b man, Netflix is trying to turn its
• 4:24
  Speaker 2: Netflix houses into its first version of Disneyland.
• 4:27
  Speaker 3: For our third and final story, City Chic has warned
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  Speaker 3: that it's expecting to see sales fall by thirty percent
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  Speaker 3: this year and is desperado for some emergency cash from investors.
• 4:38
  Speaker 2: Can't imagine investors being too excited for this one. So
• 4:40
  Speaker 2: what is the story here?
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  Speaker 3: Well, City Chik is the fashion retailer started up in
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  Speaker 3: Sydney in nineteen ninety two and listed on the ASX
• 4:48
  Speaker 3: only six years later.
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  Speaker 2: And b Man, this may surprise you, but City Chik
• 4:51
  Speaker 2: was actually one of Australia's biggest fashion retailers at a
• 4:54
  Speaker 2: point you're kidding who did they own? Which big names?
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  Speaker 2: They owned Miller's Fashion Club, The Katie's and Crossroads.
• 5:00
  Speaker 3: Since then, it's sold off those businesses and made multiple
• 5:02
  Speaker 3: acquisitions in the plus size fashion space, which is what
• 5:05
  Speaker 3: it's known for now now jaesy boy. City Sheek copped
• 5:07
  Speaker 3: a serious beating through the pandemic and came out of
• 5:10
  Speaker 3: it having lost get this, ninety five percent of its value.
• 5:13
  Speaker 2: And now it's just getting worse because City Sheik has
• 5:16
  Speaker 2: warned of an expected sales drop of fifty.
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  Speaker 3: Percent this year and a mega loss amounting to over
• 5:20
  Speaker 3: ninety one million dollars plus.
• 5:22
  Speaker 2: To make matters just that little bit worse, it's looking
• 5:24
  Speaker 2: for more than twenty seven mil in emergency cash from
• 5:27
  Speaker 2: their investors to just help it stay afloat. And the
• 5:30
  Speaker 2: reason for this megal loss they man.
• 5:31
  Speaker 3: Well, it was forced to majorly discount as stock because
• 5:34
  Speaker 3: it just had too much inventory, which really hurt their
• 5:37
  Speaker 3: bottom line. So what is the key learning here?
• 5:40
  Speaker 2: So much of managing costs in retail is about anticipating
• 5:43
  Speaker 2: what inventory to stock and how much of it to see.
• 5:45
  Speaker 3: Too little inventory, you might dent your reputation. If your
• 5:49
  Speaker 3: customers are struggling to find what they want in stock.
• 5:51
  Speaker 2: Too much inventory, well, that can quickly ramp up your
• 5:54
  Speaker 2: inventory costs like storage stock damage.
• 5:57
  Speaker 1: And to clear your stock you need to go on
• 5:59
  Speaker 1: heavy discs down.
• 6:00
  Speaker 2: And this has been an ongoing issue for City Sheik
• 6:02
  Speaker 2: be Man, which back in twenty twenty two was holding
• 6:04
  Speaker 2: three times more stock than it needed.
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  Speaker 3: So it had to offer discounts of up to eighty
• 6:08
  Speaker 3: percent on some of its items to.
• 6:09
  Speaker 1: Get rid of them.
• 6:10
  Speaker 2: Not the only retailer that's fallen prey to the old
• 6:12
  Speaker 2: too much stock problem Narki as well. They were holding
• 6:15
  Speaker 2: on almost ten million bucks worth of infantry late last
• 6:18
  Speaker 2: year because of softer consumer sentiment, and.
• 6:19
  Speaker 3: Nike had to dish out major discounts to get rid
• 6:22
  Speaker 3: of this stock, which pushed its share price down almost
• 6:24
  Speaker 3: twenty percent.
• 6:25
  Speaker 1: So ay Man.
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  Speaker 2: If City Sheiks can have a miraculous recovery, it really
• 6:28
  Speaker 2: needs to sort out its stock levels.
• 6:30
  Speaker 1: Fluxdam.
• 6:31
  Speaker 2: We know you're all counting down nine days until the
• 6:33
  Speaker 2: end of this financial year, which means nine more days
• 6:36
  Speaker 2: to make purchases.
• 6:37
  Speaker 1: It can be tax deductible. We've got it all covered.
• 6:39
  Speaker 2: In the flux out which items to buy and what
• 6:41
  Speaker 2: you can claim, so make sure to check it all out.
• 6:43
  Speaker 3: Thanks for listening, and we'll see you on Monday.