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 > Who keeps gaining market share?

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Comment by VeritasVernon Aug 15, 2020 12:28pm

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Post# 31412709

RE:RE:RE:Who keeps gaining market share?

quinlash wrote:

VeritasVern wrote:

quebec4ever wrote: Hexo gained and Canopy lost..... From BNN Carter said Canopy Growth recently embraced the value segment with cheaper bulk options after the company lost market share and needed to spur sales. "If they can focus on growth, then maybe [Canopy] can win back some of its market share," he said.

So Hexo gained due to bulk options and now that Canopy is into bulk means it's game on. So they will compete for bulk market share and so will others and there goes the profit margin as it becomes a race to the bottom. Sorry that is not a sustainable strategy to make profit. But then again did Hexo think they would be allowed to take market share without a fight. Bye bye sequential gains as that is now out of the cards and so does the voodoo accounting last quarter.

Vern,

The profit margin that HEXO has reported is 40%, the profit margin reported by Canopy Growth is 9%. The higher the profit margin the more money you are making per sale of each of your products. If HEXO wanted to go toe to toe with canopy growth and compete on pure pricing they could literally drop their margin by 9% on each of their products and run Canopy Growth into the ground.

As stated by the CEO in the last Call Transcript. HEXO is expecting to become EBIDTA positive in the first half of their 2021 Fiscal year. Canopy Growth has withdrawn their guidance on when they expect to be EBIDTA postive. HEXO is NOW IN their fiscal year 2021 and the first half of that reporting year ends Jan 30, 2021. Next QTR report is expected out from HEXO Oct 23 to Oct 26th.

Best Regards

Q

Did you ever ask yourself why Hexo has a profit margin of 40% and Canopy 9%. Do you actually believe that they are that much better and efficient and how is that so when Hexo sells the majority of their inventory for $4.50/gram?
As stated before the massive writedown Hexo used when they closed the one plant, they used that opportunity to transfer a lot of the cost from current operations to boost thier profit margins. Now that those are done we will see if Hexo becomes profitable. History has prove SSL cannot be trusted and that is still the case, hello $1/share....