This is what the Flux I'm Brett and I'm Justin and it's Friday, the fourteenth of February.
Flux Family. If you've got a HEX debt and you're looking to buy a home, listen to this one. The federal government has given a new direction to banks which will allow them to disregard HEX repayments when assessing mortgage applications, and that means potential homeowners won't be punished for studying at UNI as long as they plan to pay off the debt in the near term. Question Marks over what near term means be There many question marks. Pluxam.
If you are looking for a home, then there is one place that will get you to the next level. It's winning fifty bucks on a Friday. In the Flux app will release quick sticks at a random time today and if you're the first person to answer three business or finance questions correctly, you'll win fifty bucks. To make sure to download the Flux app and turn your notifications on to win it money.
Three generous stories today. Juzzy Boy for our first chemist warehouse officially launched on the ASX yesterday as it's mega merger with Sigma Healthcare went live.
Now it's time for investiceing. Why pay more for the share price? So tell me what'll be Man.
Well, Jazzi boy. We all know Chemists ware House as the pharmacy with ales tighter than compression socks and the jingle more catchy than hot Potato by the Wiggle. Since its first store in two thousand, Chemist Warehouse has grown to more than six hundred stores.
And be Man or Chemists Warehouse announced its plans to merge with Sigma Healthcare that in December twenty twenty three. Yesterday was their hard launch.
And chemist Warehouse sprinted from a private company to the nineteenth largest on the as house.
We're talking to company worth around thirty two billion dollars.
Now for some perspective here, Chemist Warehouse is valued more than Colds and more than double of Quantus and be Man.
With so few big name companies listing on the ACEX lately, there has been a heap of buyers that have been sweeping in YEP, and naturally a lot of sellers getting out, in particular be Man Chemists Warehouse franchisees who collectively were holding more than a third of the company pre IPO and unlike the Chemists ware House founders, these franchisees shares those were unescrowed.
So they're making a rain as the nasal spray. So what is the key learning here?
When a company goes public or mergers with another company, shareholders are often required to hold onto their shares for a set period of time.
Now. This is called escro and it's designed to prevent a flood of shares hitting the market all at.
Once, which could crash the share price.
For example, Juzzy Boy Chemist Warehouse co founders own forty eight point three percent of the merged company, so.
If they were to sell all their shares on day one, it would be way more supply of shares than demands.
Causing the share price to decline big time, not to mention the fact that new investors would be less likely to invest if they knew the founders were out on day one.
On the other HANDO b Man Chemists ware House franchisees, who earned about thirty seven and a half percent of the company aren't under escrow terms.
And with so much interest in Chemists ware House stock, many franchisees have already jumped at the chance to cash in. And while the sales of franchise shares has already begun. We could see even more selling in the coming week. For our second story, the Federal government says it will acquire REX Airlines if there isn't a buyer for the airline by the end of June.
Alba going from Prime Minister to REX CEO. Slush Sugar Daddy didn't see that on his LinkedIn profile, so John me Moore.
Well, REX, which is short for Regional Express, has been flying Australians to the farthest corner of the country since two thousand and two.
Yeah, it's become the second largest regional airline based on the number of regional destination.
We're talking Hubert Petty and Cans.
Miljura, even Monkey Mia.
But here's the thing. REX got a little too ambitious in twenty twenty. It expanded to the big leagues, taking on the Sydney Melbourne Brisbane triangle and Beeman.
Let's just say it was not a smooth landing.
But by July last year REX had hit turbulence, falling into administration and scrambling for a buyer. But now be Man, Rex can't even buy a bid now. As a result, the Federal government has promised to acquire Rex to ensure the regional flights remain operational.
And if that happens, it would be the first time since nineteen ninety five that the Australian government has owned an.
Airline after sailing off Quantas.
So what is the key learning here?
When infrastructure is at risk, governments have no choice but to step in and sometimes nationalize the service.
Awbman, might I remind you Australia has a history of going the other way, which is privatizing public assets.
So yes, we'd be talking Quantas, Telstra, the Commonwealth Bank, which were all once government owned.
But when a key player in a critical market fails, nationalization becomes an option again.
And juzuboy Rex is a prime candidate for nationalization because regional airlines connect remote communities around Australia and stimulate regional economy. And Australia wouldn't be the first country to own or partially own a national airline.
Singapore Airlines and New Zealand entire Ways just over majority owned by their respective government.
And Emirates and Ediehead are entirely owned by their government, so be man.
While the government privatized Quantus nearly thirty years ago it might step back into the airline industry once again.
For our third and final story, reddits Stock has taken a hit after its user growth missed expectations as it struggles to compete with Meta and Google. A. You're telling me that reddit got down voted on Wallster, I am what is going on here?
Well?
Reddit is the Internet's ultimate rabbit hole, juzzy boy. It's the place where people post and comment and debate literally everything.
Yeah, they're on nearly three and a half million subreddits. They cover broad topics like finance and fitness, to some very specific topics as well.
Like my personal favorite hashtag bread stapled two trees, where people post photos of bread staple two trees.
What about hashtag Thomas the dank Engine where people remix and share the Thomas The tank engines are now juzzweit.
Reddit has announced its fourth quarter results where it had just under one hundred and two million daily active users, but analysts.
Were expecting nearly one hundred and four million daily activities. So question, what was the reason for this drop in active.
User Google's algorithm changes? Tell me more, juzzy boy.
Well, Reddit relies heavily on search traffic from Google.
All right, so when Google tweaks the rules, Reddit builds it hard exactly.
But bit man, it isn't all bad news for Reddit because even though they had slower use of growth, they saw it. They saw their quarterly revenue jump seventy one percent. But this is a little for Reddit and friends. That reliance on one single platform can come back to bite you. So what is the key leading here?
Platform dependency risk is when a business relies too heavily on a single external platform or service provider.
It could be Google, could be Meta, could be Amazon or other platforms that drive traffic or sales.
And why, oh, why, juzzy boy, your little expert, is this such a big risk because a single change can create drastic impacts on a company's performance, like what happened to Reddit. Yeah, on some days, up to fifty percent of reddits daily visitors came from Google.
While and so a small algorithm change or even a policy update can change the fortunes of a company. Blucklam, make sure to turns silent mode off Florrow, because we are dropping the flux notification for quick sticks. At some time during the day, you be the first person to answer three business or finance questions correctly, you'll win fifty bucks to kick off the weekend. To make sure to download the Flux app, have your notifications turned on and.
Silent mode off. Thanks for listening, and we'll see you on Monday.