This is what the Flux I'm Brett and I'm Justin and it's Wednesday, the twelve per March.
Jes Wait Koala, the mattress in a box retailer is looking at listing on the ASX this year.
Yep.
They generated one hundred and ninety mil in revenue from their mattresses, their homewares, and their furniture just last year and based on this, hoping to get a five hundred million dollar valuation. Not bad for a company that recorded five hundred and fifty eight thousand dollars that's improfit last financial year.
That is a serious multiple.
Long Forrotherby Man measily talking about best performing stocks, we have the best performing stocks on the ASX in Debruary covered in the.
Flux app right now. And then, man, let me tell you there are some very interesting companies, some very milky companies that have popped very well in February. So Fox app. Make sure to check out the Flux app.
Three intelligent stories today, Juzzy boy, let's do it for our first. The worst of cyclone Alfred is officially over and now it's time for insurers like Suncourt to count the costs of the insuranurrance claims.
Very scary time for Ozzie's be Man and insurers as well. So tell me what's going on?
Okay. So obviously, Josie Wall, you know that Cyclone Alfred has hit Queensland and New South Wales over the last few days or so.
And wreaked havocon beaches on houses and buildings as well.
The TikTok videos of the winds and the damage have been while.
And thankfully be Man, the Queensland Premieer, has now come out and said the worst of the cyclone is over. That is good, but now it's time for the insurers to count the claims and dead costs.
That one is a little bit bad.
Yeah. In fact, be Man sun Corp Group, the largest insurer in the Queensland market, has run the numbers and what have we got. They've already received more than eight hundred claims from people in the affected states.
Over seven thousand claims for home insurance and.
Over two thousand claims for food spoilage.
And that could amount to billions of dollars in compensation.
But thankfully be Man for sun Corp, they're backed by the Cyclone Reinsurance Pool i e.
The government's ten billion dollar guarantee for commercial insurers.
Interesting. So what is the key learning here in.
Insurance is the insurance for insurance companies.
Think about it. When you buy insurance for your car or your house, you're paying your insurer to cover you in case something bad happens.
But to reduce their risk, insurers often by their own insurance from bigger financial institutions, and this helps them cover big payouts without going broke. You see, in cyclone prone areas of Australia, like Northern Queensland, insurance premiums have been skyrocketing.
Get this. In twenty twenty three, the average insurance was fifty percent higher in Northern Queensland compared to other regions of Australia, and that meant many people couldn't afford to ensure their houses.
Which creates even bigger problems.
So to bring these costs down, the Australian government created the cyclone Reinsurance Pool.
Essentially, the government scheme covers insurance claims made in the first forty eight hours of the cyclone event.
And that means instead of insurers dishing out billions themselves, they pass most of these costs to this government backed pool.
So Suncorp Is hoping that this scheme takes the load off them and ultimately.
It gives consumers quick relief for their insurance claims.
For our second story, Unilever, the consumer goods company behind Dove and Magnum, is completely shifting its marketing strategy in order to rebuild customer trust.
Traditional advertising is aging like an expired Hellman's mayonnaise, b Man, So tell me more.
All right. So, Unilever was founded in the nineteen twenties Juzzy Boy, and has grown into one of the world's biggest consumer goods company.
Unilever owns over four hundred brands, meaning you probably have at least one of their products in.
Your home right now, b Man, we would be talking big names like Dove, ben and Jerry's, over Direcsna, Sunsilk, Vasoline, and so many more.
And I think I'm whipping the links to theodor on you right now.
Guilty. But now Juzzy Boy, Unilever's new CEO has come out all guns blazer roony.
Yeah. He reckons that traditional advertising has lost credibility and consumers are now suspicious of corporate messaging. So now the company's pivoting towards influencer marketing. In fact, by Man, Unilever is planning to allocate up to fifty percent of its advertising budget to social media influences and celebrities.
Unilever wants to get in with the cook kids, the TikTokers, the instagrammers, the YouTubers, the.
People who can sell your moisturizer as part of their get Ready with knee routine.
Yeah, so what is the key learning here?
Trust is the most valuable currency in business, and brands will do whatever it takes to earn it.
Get this stat juzzy Boy. Research by Nielsen shows that ninety two percent of consumers trust influences more than brand ads.
So be man. Companies using influencers to do the talking on behalf of their brand.
Yeah. Unilever is betting that using hundreds of influencers instead of a few TV ads will bring more credibility.
And ultimately a better return on their investment.
But managing hundreds or even thousands of influencers takes a lot of work, juzzy Boy.
On the one hand, unied Lever need to let influencers create the content in their own style.
On the other hand, they need to ensure key messages are delivered and scandals are avoided at all costs.
So Unilever is taking a bold, calculated approach to ensure its products and more trusted.
In an increasingly skeptical market.
For our third and final story, global share markets, including the ASX, have taken a major hit after Donald Trump has warned that the US may go into recession.
This is a serious departure from the bullishness he's always had previously. So what is going on here? Okay?
So we've spoken in a number of times in the pot about the tariffs that Trump plans to put on some of the US's biggest trading.
Partners Mexico twenty five percent tariff, Canada twenty five percent tariff, China twenty percent tariff, and be Man.
There ain't no stopping Trump's aggressive trade policies, you.
See, Juzy boy. He claims that the US is in a period of transition because they're doing something very big.
At the same time, China's already hit the US with tariffs, and Canada and Mexico have threatened to do the same as well.
Next minute, Trump doesn't rule out a recession, and global share markets go bonkers.
In a Nippi way yep, the Nasdaq had his biggest one day fall since September twenty twenty two.
The ASX two hundred fell to a seven month low, and we're now heading into market correction territory in the US.
So what is the key learning here?
Market corrections are a reminder that no bull run lasts forever.
Technically, be man. A market correction is when a stock index falls at least ten percent from its recent.
High, and the Nasdaq has now dropped thirteen point four percent from its peak in December, so.
It's officially entered correction territory right now. In VideA has dropped over five percent if you don't mind, Tesla's down fifteen percent, and even Apple has dropped four and a half percent as well.
So, Jessie Boye, why have tech stocks been hit in this market correction?
Because investors worry that a slowing economy, companies with high valuations are the hardest.
But here's the kick out. Historically, corrections are often followed by recoveries.
The challenge is knowing when to jump back in Fox. The ASEX two hundred index dropped over four percent in February, but we cover some of the biggest hitters from February, some companies jumping up to thirty five percent, thirty percent, twenty five percent. If you want to learn more about which companies perform the best and against the tide in February, make sure to check out the flux out.
Thanks for listening, and we'll see you on Friday,