Question 1: I’ve had a nice run with Megaport (MP1), which I bought close to its lows of $4. Are you still bullish on this stock or are you of the opinion that it will run out of steam?

Answer: Megaport (MP1) has had a terrific run, particularly over the last week or so as its upgraded guidance for FY23 said it would be cash flow positive in Q4 and would be providing upgraded guidance for FY24 when it releases its full year results in August.

Peter is the Megaport guru and yes, he is still bullish on the stock.

The analysts are largely positive, although there are a couple starting to say it is close to fully valued and the risk/reward is no longer there. According to FN Arena, the consensus target price is $10.31, 9.2% higher than the last ASX price of $9.44. The range is a low of $8.30 through to a high of $13.00.

There are two good sayings when it comes to profit taking: “let your profits run” and “you never go broke taking a profit”. Perhaps a little contradictory, both can be true.

If you’re feeling a touch nervous after such a good run, maybe you sell half and bank your initial investment…and let the remainder run.

Question 2: I followed your recommendation and invested in GEAR. It has announced a very big distribution, which is largely fully franked. Why is the distribution (and franking) so big?

Answer: The Betashares website says that the franking level will be 88.1%. There is also an ‘Estimated Annual Distribution Information Sheet’ (dated 10 July) that you can download.

As a trust, GEAR distributes all its income in full. The very high distribution level represents the dividends it has received (and realised capital gains) on the shares it owns, and the franking credits thereon.

 Question 3: What is the normal charge for an ‘off-market’ transfer’? I want to transfer some shares into my SMSF and my accountant has quoted a fee for this service.

Answer: There is no standard ‘off-market transfer’ fee, but leading brokers tend to charge around $55 per transfer. This includes GST.

You can, of course, do the transfer yourself. Just use an Australian Standard Transfer Form, and then lodge with the appropriate share registry. They may then charge you a fee to process (again around $55). Usually, they require that the ‘purchase consideration’ is at market – so it should be at a traded market price on the date of acquisition.

Question 4: If I make a non-concessional contribution to my super, what are the limits that now apply?

Answer: There has been no change to the general cap on non-concessional super contributions of $110,000. However, your total superannuation balance must be under $1,900,000 in order to make a non-concessional contribution (previously $1,700,000 in 22/23).

Also, if you wish to access the ‘bring-forward’ rule, which essentially allows you to make up to 3 years’ of worth of contributions in one hit, the limits applying to this have changed as follows:

• If your total superannuation balance was less than $1,680,000 on 30/6/23, you can potentially contribute up to $330,000
• If your total superannuation balance on 30/6/23 was between $1,680,000 and $1,790,000, you can potentially contribute up to $220,000
• If your total superannuation balance on 30/6/23 was between $1,790,000 and $1,900,000, you can potentially contribute up to $110,000.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.