Question 1: I own 3,000 shares in Star Entertainment Group (SGR). With the capital raising, how many new shares will I be entitled to and what will be the issue price?
Answer: Star is raising $750m through an entitlement issue and a placement to institutional investors. The new shares will have an issue price of $0.60. The entitlement issue is on a 1 for 1.65 shares held basis. That is, if you own 165 Star shares, you will be entitled to buy 100 new shares at 60c each. In your case, with 3,000 shares, you will be entitled to buy approximately 1,818 shares. The offer will open on Tuesday 3 October and is due to close on Thursday 12 October.
Question 2: Resmed (RMD) seems to have fallen out of bed. What do the analysts say?
Answer: Overall, the analysts are quite bullish. According to FN Arena, the consensus target price is $35.05, almost 53% higher than the last ASX price of $22.99. However, there is a bit of divergence. Macquarie recently reconfirmed its ‘outperform’ rating with a target of $32.60, while UBS downgraded to ‘neutral’ with a target for its US shares of US$170 (about A$26.50 for the CDIs listed on the ASX)).
Question 3: I wish to place some money in Uranium stocks. Since most don’t pay a dividend it would be purely for capital gain. I feel it will be a `demand stock’ when we realize net zero won’t work and Mr Dutton takes it to next election. Best stocks?
Answer: James Dunn wrote about this on Monday (see https://switzerreport.com.au/6-ways-to-play-uranium/ [1] ). He nominated six stocks, including the market leader Paladin (PDN) and a Betashares Exchange Traded Fund, Global Uranium (URNM), which tracks an index of leading global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy, or that hold physical uranium or uranium royalties. Australian listed companies make up about 16% of the index.
It is important to remember that uranium is a global commodity, and actions taken locally by our government are unlikely to have any major impact on the uranium price. Government actions might impact the ability of our companies to mine the commodity, but the biggest influence on the share prices of these companies will be the underlying commodity price.
Question 4: If I start a super pension mid-way through the year, do I need to take out any money during that year?
Answer: It works on a financial year basis and is prorated. If you had $1 million in a super pension account at the start of the financial year and were aged 65, you would need to withdraw at least 5% ($50,000) as a pension during the 23/24 financial year. If instead you commenced the pension on 1 October, you would be required to take approximately 9/12ths of that amount – approx. $37,500. If you started it on 1 January 2024, you would only need to take about half (i.e., $25,000). If the pension is commenced in the last month of the financial year (June), no withdrawal is required.