BME: Discount Widens Substantially Creating An Opportunity

Summary

  • BlackRock Health Sciences is trading at a discount not seen since the Global Financial Crisis, creating a potentially strong opportunity at this time.
  • BME is a healthcare-focused fund with a stable underlying portfolio that employs a covered call writing strategy.
  • BME's distribution has never been cut since its inception going back to 2005, and despite some softer performance, it doesn't look at risk either.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Stethoscope and money on wooden table

mohd izzuan

Written by Nick Ackerman, co-produced by Stanford Chemist.

BlackRock Health Sciences (NYSE:BME) was a closed-end fund that had regularly enjoyed trading at premiums throughout most of the last decade. Over the last year, that began to change, and a

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This article was written by

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Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BME, BMEZ, UNH, ABBV, MRK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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