Question 1: There is a lot of chatter about uranium stocks, which seem to be surging following comments from President Trump and others. Do the brokers prefer Paladin (PDN) or Boss Energy (BOE)?
Answer: Both stocks have rallied strongly, with Paladin up about 92% from its recent low and Boss Energy up 120% from its low in March. The brokers see more potential upside for Paladin.
According to FN Arena, all the major brokers have a “buy” recommendation on Paladin. The range of target prices is wide, from a low of $5.70 from Morgan Stanley through to a high of $10.10 from both Citi and Shaw. The consensus of $8.49 is 13.4% higher than the last ASX price of $7.49.
With Boss Energy, the consensus target price of $4.16 is 8.2% lower than the last ASX price of $4.53. The range of targets is very wide, from a low of $2.70 from Morgan Stanley through to a high of $6.00 from Ord Minnett.
Question 2: Can my 14 years old daughter, who works in McDonald 6—10 hours a week for the last 6 month, get the super co-contribution from the Government?
Answer: Yes, if you (or her) make a contribution to her super fund prior to 30 June of up to $1,000, she should be eligible for a co-contribution of up to $500 from the Government (she will get 50c for each $1 of personal contribution made). (I assume she has no other substantive income). Be quick, however, as many of the big super funds have cut-off times ahead of 30 June and unless the money is receipted and processed by the super fund, she will miss out on the co-contribution from the Government.
Question 3: Is the ASX changing how the stock market opens? When do these changes start?
Answer: Yes, the ASX is introducing changes to market opening times from next Monday (23 June). The opening price for each stock will still be calculated by the same algorithm, but rather than a staggered start (which sees stocks open in 5 groups between 9:59:45 and about 10:09:15), all stocks will now open for normal trading between 09:59:45 and 10:00:00. (i.e. at the same time, but within a random 15 second window).
If you want to participate in the opening match, your order will need to be placed with your broker before 09:59:00.
Question 4: What are the rules around the spouse super contribution? What counts as income?
Answer: You can get a tax offset (effectively a tax rebate) of up to $540 if you make a contribution to your spouse’s super of $3,000 (effectively 18% of the contribution). However, you can only do this if your spouse qualifies as follows: a) your spouse’s income must be less than $37,000 (with income defined as assessable income plus reportable fringe benefits plus reportable employer super contributions); b) your spouse hasn’t exceeded the non-concessional contributions cap of $120,00; c) your spouse’s total super balance is less than $1.9m and your spouse is under 75 when the contribution is made.
