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.

NYSE:BFK - Post by User

BLACKROCK Municipal Income TRUST > Buy to Cover Explained - $2.00 + Target

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Comment by Skateron Dec 20, 2021 4:15pm

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Post# 34248201

RE:RE:RE:RE:RE:RE:RE:Buy to Cover Explained - $2.00 + Target

Good post Keeler.

Couple of other thoughts:
No one is looking to buy Hexo and take on their debt. And if they did, it would save Hexo but crush the shareholders. Look at Newstrike shareholders as an example.

They will need more equity to deal with the debt and the lower the share price goes, the greater the dilution. Could double the number of shares ie. a new round of investors will own half the company. Existing shareholders get crushed.

Rollback before or after the next equity round, shareholders get crushed.

Hexo goes bankrupt, shareholders get crushed.

I don't see a scenario where existing shareholders don't take it up the a$$, there is no way or enough time for them to operate organically out of this mess.

Don't say you weren't warned. I've seen it happen before.

Skater

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