Update December 2010: We have just updated our Cuba Stock Index page at our sister site, Havana.biz, to include all the companies we think might benefit from a free/freer market economy in Cuba.
Here is a list of some Cuba related stocks that I follow. In full disclosure, I may currently own, previously own or might be considering owning shares in any one or more of these companies.
Herzfeld Carribean Basin Fund: stock symbol CUBA The Herzfeld Caribbean Basin Fund’s investment objective is long-term capital appreciation. To achieve its objective, the Fund invests in issuers that are likely, in the Advisor’s view, to benefit from economic, political, structural and technological developments in the countries in the Caribbean Basin, which consist of Cuba, Jamaica, Trinidad and Tobago, the Bahamas, the Dominican Republic, Barbados, Aruba, Haiti, the Netherlands Antilles, the Commonwealth of Puerto Rico, Mexico, Honduras, Guatemala, Belize, Costa Rica, Panama, Colombia and Venezuela. The fund invests at least 80% of its total assets in a broad range of securities of issuers including U.S.-based companies that engage in substantial trade with, and derive substantial revenue from, operations in the Caribbean Basin Countries.
Florida East Coast Industries: FLA This company is a major holding for the Herzfeld Fund mentioned above. Florida East Coast Railway (FECR) operates a Class II freight railroad along a 351-mile corridor between Jacksonville and Miami. It serves the densely populated east coast of Florida and is the only rail-service provider to the Port of Palm Beach, Port Everglades (Ft. Lauderdale) and the Port of Miami.
Royal Caribbean Cruises: RCL Royal Caribbean International is a global cruise brand with 21 ships currently in service and three under construction. The line also offers unique land-tour vacations in Alaska, Canada, Europe and Australia through its cruisetour division.
Leisure Canada: LCN.V (Vancouver stock exchange) recently recieved surface rights on the 34,000 m2 ocean-front property of its Monte Barreto all-suite resort project in the Miramar section of Havana. The all-suites Monte Barreto resort complex represents one of the most important and strategic hotel projects in development in Cuba today. With a planned 800-room hotel accompanying significant convention and retail space, Monte Barreto will stand as Cuba’s foremost luxury hotel catering to the world’s most sophisticated traveler.
Pebercan: PBC.TO (Toronto Stock Exchange) PEBERCAN INC. is involved in exploration, development and exploitation of oil and gas fields in the Republic of Cuba.
PEBERCAN holds, throughout its wholly-owned subsidiary PEBERCO, all the rights and obligations of a hydrocarbon production sharing agreement with CUBAPETROLEO, the Cuban National Oil Company (CUPET). This agreement, signed in August 1993, foresees 25 years duration, until 2018. PEBERCAN holds exploration acreage free of any threat related to the Helms-Burton Act.
The contract with CUPET foresees the terms and conditions of production sharing which PEBERCO takes advantage of partnership for expenses and revenues. With this risks partnership policy, the Company recovers all invested petroleum operation expenses on its exploration acreage at the first hydrocarbon strike.
The exploration acreage includes five(5) onshore concessions in Cuba covering a total area of 6,055 km. Here is an illustrated map of Pebercan’s oil drilling and production operations in Cuba.
Sherritt International: S.TO and SHERF (Toronto Stock Exchange, SHERF to buy in US) Sherritt’s Oil and Gas business produces oil from fields in Cuba and Spain. Almost all of its revenue is from nearshore fields in Cuba, where Sherritt holds 40-100% indirect working interest in ten production-sharing contracts and is the largest foreign producer. Since 1992, Oil and Gas has successfully built its Cuban operations from a modest enhanced oil recovery program into an intermediate exploration and production business that contributes significantly to the success of the Corporation.
Most of Sherritt’s Cuban oil production is derived from oil fields located at Yumuri, Varadero, Canasi, and Puerto Escondido (see map). Average net production in 2005 was approximately 17,000 barrels per day.
Near-shore oil reservoirs are accessed by directional drilling from land-based rigs. Heavy oil is produced, which is sold to the Government of Cuba at market-related prices. Most of the oil is consumed in state power plants which generate the bulk of Cuba’s electricity. See this large illustrated map of Sherritt’s operations in Cuba.
Sol Melia: SOL.MC (Madrid Stock Exchange) The company operates hotels under the Meliá Hotels & Resorts, ME by Meliá, TRYP Hotels, Sol Hotels, Paradisus Resorts and Sol Meliá Vacation Club brands. Sol Melia owns or operates many hotels in Cuba and is based in Palma de Mallorca Spain. They have offices in Miami and in Cuba at TRYP Habana Libre 5* Calle L e/ 23 y 25, Piso 24 Ciudad de La Habana - Cuba Tel. (53-7) 55 40 11
You know of more Cuba related stocks that might be good investments, please post them here and we will update this main article. Stocks can be US or foreign based.