BLACKROCK Municipal Income TRUST V.BFK.P

Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.

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BLACKROCK Municipal Income TRUST > Quinlash

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Comment by quinlashon Aug 15, 2020 12:13pm

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Post# 31412675

RE:Quinlash

Hi CGC,

There are two issues with a share buy back program, here they are;

1 - It costs money to buy back the shares. HEXO needs to ensure they have cash on hand to sustain the operation while it turns the corner to becoming profitable. IMHO the odds are low that they will use cash on hand to do a share buy back program and opt to keep the cash to ensure they can fund development of the business.

2 - The outstanding share count would be reduced. If HEXO were to do a share buy back program and reduce the number of shares on the market and the math does not work out well for them to have the option to do a reverse split. A share buyback program would certainly show confidence to investors however if that show of confidence does not keep the shareprice over $1 then they will have made it very difficult to do a RS and force the shareprice up.

When you consider the "Options over Obligations" approach to business a Share Buy Back Program limits there options and sticks them with obligations. IMHO I do not see the company taking that path so that they have options down the road.

JMHO

Q

CGC12345678 wrote:

Quinlash,

Question of accounting strategy.

Why do Hexo and the big HEXO lenders not buy back shares to keep it at a minimum of $ 1.25 to give the small investor confidence in this way I myself will invest a lot more. A strong signal that HEXO is promising.

You are true for a company to remain listed on the TSX it must be at least over $ 1.

If HEXO produces with Coors, what are they waiting for to give a production date?

Thank you in advance and have a good weekend.