Cuba Business

Havana Journal Cuba Business Report - July 9 2007 - Herzfeld Cuba fund - video

Posted July 09, 2007 by publisher in Cuba Business.

Publisher note: This is my first attempt at adding some video content to the site. I plan to offer a variety of short news reports featuring the most interesting Cuba related stories of the day. Please bare with me while I try to find some better talent grin Running time is just two and a half minutes.

Herzfeld CUBA fund up 5.5% today and link to Forbes article about investing in a post-Embargo Cuba.

The Herzfeld Caribbean Basin Fund which is a closed end mutual fund that trades on the NASDAQ under the symbol CUBA was up 75 cents or more than 5.5% today closing at $14.31.

by Alex Davidson titled “After Fidel” from Reuters

Prior to the 1961 embargo 80% of Cuba’s trade was with the U.S.

Today the Netherlands and Canada are the two biggest recipients of Cuban exports (mostly metal ore, sugar and tobacco); Cuba imports petroleum, grain and electrical equipment from Venezuela and China.

Cuba gets 2 million visitors a year and will appeal to hotel companies and cruise operators, as well as to corporate farmers in need of equatorial sunshine. As for its resources, joint ventures in Cuba with the nickel and cobalt industries brought in $1.3 billion in 2005, while estimates of offshore oil reserves are at 5 billion barrels and of natural gas reserves at 10 trillion cubic feet.

Herzfeld tells eager investors that a postembargo Cuba is all about the ABCs: “A” for aircraft, air-conditioning, autos and agriculture; “B” for boats, buildings, boatyards and banking; and “C” for cigars, casinos and cement.

There is more information about the following companies in the article:

Florida East Coast Industries (nyse: FLA)

Seaboard Corp (amex: SEB)

Watsco (amex: WSO.B)

Royal Caribbean RCL

Carnival Cruiselines (nyse: CCL)

Trailer Bridge (nasdaq: TRBR)

Teco Energy (nyse: TEPRT)

In full disclosure, I am a shareholder of the Cuba fund.

You can leave comments below and check out our Cuba Business Forum



I welcome your comments about the news but also comments about the newscaster grin I would like to hear your comments about what type of content you would like to see here at the Havana Journal…travel news, business, video, full news, partial news with links to original articles, etc.

Member Comments

On July 09, 2007, edward wrote:

I don’t wish to rain on your parade here but aspects of the site are beginning to resemble a circus based entirely on some kind of freak show fantasy. The audience seems to comprise in the main of vultures waiting to pick over an imaginary carcass that in fact is far from dead.

A succession of power is being quietly played out in Cuba and I can almost here the howlsof laughter from Havana in London. As far as the newscaster goes he makes GWB sound like a great orator. I guess he’s gotta start somewhere.

On July 09, 2007, publisher wrote:


On the contrary about the “carcass”. I think Cuba is just about to come alive and the Cuban people will finally be well rewarded for their decades long struggle.

As far as the newscaster, he’s gotta start somewhere grin

On July 09, 2007, edward wrote:

You asked for an honest opinion, also well said Publisher, I hope you’re right about about Cuba coming alive and yes, your newscaster has an interesting career ahead of him.

On July 09, 2007, edward wrote:

Also, it’s great to see HN incorporating some video streaming, it’s good to see and I look forward to the incoming news and views.

Keep up the good work.

Viva Cuba

On July 09, 2007, Joel Sternberg wrote:

Unfortunately, cheering on Cuba and investing in the Herzfeld Caribbean Basin Fund are two different things. People should separate their hearts from their wallets. As of today’s close, the Fund trades for over $14, even though the value of the stocks it holds are worth only 9.99. That is like paying a buck-40 for one dollar. Not too bright. Almost all of the stocks held by the Fund can be bought right on US markets for only one buck for every one dollar of value. You can follow this link to find the near current holdings.

You will find that Florida East Coast Industries comprises fully 18% of the fund, and can be purchased for one dollar for every dollar of value right on the good old New York Stock Exchange. Seaboard, which about 12% of the Fund, can be purchased right on the American Stock Exchange. Ticker symbols are FLA and SEB, respectively.

If you want to oppose Castro, oppose Castro, but throwing away your money on a Fund that trades for more than it is worth is silly. Castro needs smarter adversaries.

On July 10, 2007, publisher wrote:

“Castro needs smarter adversaries.”

Funny. Point taken on the fund. I had a different script written but then I saw the two stories about the fund then the stock price jump, I thought it was newsworthy.

Thanks for your input.