BME: Discount To NAV But High Fees And Volatility

Blue Chip Portfolios
1.83K Followers
(11min)

Summary

  • BME has delivered solid long-term returns since its 2005 launch, earning positive ratings from Seeking Alpha analysts, with most recent articles rating it a Buy or Strong Buy.
  • The trust has a relatively high expense ratio and has experienced significant volatility related to trading levels relative to NAV.
  • BlackRock recently announced a tender offer that will allow 2.5% of the fund's units to be repurchased at 98% of NAV.
  • BME currently trades at a 6.5% discount to NAV, which I view as reasonable compensation for its high fees and significant volatility.
  • I rate BME a Hold.

Currency and Exchange Stock Chart for Finance and Economy Display

cemagraphics

The BlackRock Health Sciences Trust (NYSE:BME) is an investment trust that is focused on investing in companies in the health sciences are related industries. The trust seeks to deliver total return through a combination of current income and long-term

This article was written by

1.83K Followers
Blue Chip Portfolios is an investment publication company focused on delivering investing insights on single stocks, ETFs, and CEFs. Blue Chip Portfolios is also the publisher of the Blue Chip Portfolio's Newsletter on Beehiiv

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Recommended For You

About BME Ticker

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Volume
Compare to Peers

More on BME

Related Stocks

SymbolLast Price% Chg
BME
--