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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

Post by Keeleron Mar 10, 2023 10:08am
99 Views
Post# 35330384

How many bad decisions can one make on a Hexo investment?

How many bad decisions can one make on a Hexo investment?In December, poor technical analysis led some to believe the 'bottom was in' at .15 cents - which led them to load up at .155 (per their own posting on SH)

This was a mistake as immediately after that investment decision - Hexo announced the real life events that EVERYONE knew were coming, or shoiuld have - the 14-1 reverse split and the release of the Q1 financials, both of which were disastrous and caused the dramatic drop in share price - which EVERYONE knew, or should have known, would happen.

Not taking real life events into account and relying on faulty technical analysis is a mistake.
BUT,
to limit their loss, the investors chose to sell at .12 cents. 
A 'long' investor who proclaims his belief in the future of Hexo probably wouldn't sell for a loss - based on panic, after a mere ,03 cent drop - that would be a mistake.
Now, some of those same invetors proudly proclaim that they bought back in as low as .10 cents - which begs the question, how is .10 cents a good investment decision if you felt you needed to limit your losses and sell at .12 cents.?
Seems like an investment decision mistake.

Currently, Hexo's share price sits at about $1.96 - or about .14 cents pre split. which means that the invetor who bought at .10 is up .04 cents - but down .035 on the previous transactions.
The Q2 financials are due to be released next week.

My suggestion is that if the 'technical analysis' indcates that the bottom is back in at .14 - you take into account the real life event of the financials bring released enxt week before 'loading up' again, becasue EVERYONE should know that they'll be another disaster - and that would be a msiake. mistake. 

Of course, an investment in Hexo in the current situation is likely a mistake






 



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