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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

Comment by MisterMontrealon Mar 14, 2019 7:38am
212 Views
Post# 29483714

RE:RE:RE:RE:RE:So here's a question

RE:RE:RE:RE:RE:So here's a questionBut if I spend $5000 on HEXO shares today at $7.80, what are they worth if HEXO goes to $10?

I'm pretty sure it's something like $6400, basically my $5000 of HIP is worth exactly what my $5000 of HEXO is worth. From today forward until the deal either goes through or crashes HIP stock is essentially linked to HEXO. The only way it might be beneficial to have HIP is if HIP stock goes up and HEXO crashes and then the deal falls through. I don't see HEXO crashing right now, especially with the financials being pretty positive. 

Since the two are essentially linked right now, no matter what you spend on your HIP shares today, in a few months they will be worth the same as the HEXO equivalent, so it doesn't matter which of the two you buy IN LESS you can buy the HIP shares for cheaper than the acquisition price, in which case you are getting yourself a slight premium. 

That's my take on it anyways, I'm far from an expert. 

I did pick up a small amount (6000) of HIP yesterday at the $.47 price, since I wanted to be able to stay in the loop for all shareholder news and for the voting, but I didn't do it expecting to get any kind of monetary advantage over being in HEXO.  
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