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Tuesday, February 19, 2008 11:19:32 PM
Speculation on the future of trade resrictions with Cuba...from another article...
Cuba's Loss Is Fund's Gain
Ruthie Ackerman, 02.19.08, 2:45 PM ET
In 1994, it seemd as if Fidel Castro would rule Cuba forever. But that didn’t stop Thomas J. Herzfeld from starting his
Herzfeld Caribbean Basin Fund (nasdaq: CUBA - news - people ), a closed-end mutual fund that invests in U.S. companies that stand to benefit from the end of the United States embargo on Cuba, which began when Castro came to power on New Year's Day in 1959.
On Tuesday, Herzfeld’s move finally seemed to make sense after Fidel Castro resigned as Cuba's president and commander-in-chief, sending the fund soaring 19.4%, or $1.44, to $8.88. (See " Farewell Fidel") The fund came public at $5.20 a share, so investors have had to wait a long time for the thesis to play out.
This was not the first time the fund, which trades like a stock, skyrocketed as a result of the 81-year old leader’s failing health. On Jan. 16, 2007, it surged 20.0% after it was reported that Castro was in serious condition following three surgeries on his large intestine. A few days later, it topped out at more than $16 a share, but has seen its price erode since then.
http://www.forbes.com/2008/02/19/herzfeld-cuba-castro-markets-equity-cx_ra_0219markets20.html?partner=yahootix
Cuba's Loss Is Fund's Gain
Ruthie Ackerman, 02.19.08, 2:45 PM ET
In 1994, it seemd as if Fidel Castro would rule Cuba forever. But that didn’t stop Thomas J. Herzfeld from starting his
Herzfeld Caribbean Basin Fund (nasdaq: CUBA - news - people ), a closed-end mutual fund that invests in U.S. companies that stand to benefit from the end of the United States embargo on Cuba, which began when Castro came to power on New Year's Day in 1959.
On Tuesday, Herzfeld’s move finally seemed to make sense after Fidel Castro resigned as Cuba's president and commander-in-chief, sending the fund soaring 19.4%, or $1.44, to $8.88. (See " Farewell Fidel") The fund came public at $5.20 a share, so investors have had to wait a long time for the thesis to play out.
This was not the first time the fund, which trades like a stock, skyrocketed as a result of the 81-year old leader’s failing health. On Jan. 16, 2007, it surged 20.0% after it was reported that Castro was in serious condition following three surgeries on his large intestine. A few days later, it topped out at more than $16 a share, but has seen its price erode since then.
http://www.forbes.com/2008/02/19/herzfeld-cuba-castro-markets-equity-cx_ra_0219markets20.html?partner=yahootix
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