Capitalism in Cuba? Here are the Stocks


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President Castro & President Obama
President Obama is planning to travel to Cuba next month, the first sitting president in almost a century to do so. In addition, the first U.S. based company has received approval to build a factory in Cuba, according to National Public Radio.With the trend of Americans being allowed to travel to Cuba and use credit and debit cards there, Cuba is moving forwards into the free enterprise era.

I’m sure many American companies will begin to move forward and set up operations Cuba. For stocks of companies that already have a foothold in Cuba, there are a several companies that have Cuban connections, according to

Habana Lonja del Commercio
Stock Exchange
(Cuba Stock Exchange 1907)

The most diversified way of investing in Cuba is with the Herzfeld Caribbean Basin Fund (CUBA). It is a closed end fund which is a diversified way of playing the Cuba economy. It invests in stocks of the Caribbean Basin Countries and the US, which are expected to benefit from economic growth in Cuba, Jamaica, the Bahamas and other countries. Over the last two years and last five years, the CEF is almost unchanged. .

Sherritt International (SHERF) is a Toronto, Ontario based mining, and oil, and gas company that is one of the largest foreign investors in Cuba, having more business in Cuba than any other Canadian company. A major portion of their revenues are generated by the Moa Mine in Cuba, formerly owned by Freeport-McMoRan (FCX), as a joint venture with a Cuban government company. They also operate Varadero, Canasí, Yumuri, Puetro Escondido oil and gas fields which they have leased in Cuba. In addition, Sherritt owns, Energas, the Cuban electric utility. The stock trades on the Toronto Stock Exchange in Canada and on the Pink Sheets in the United States. Unfortunately, the company revenues are down 24.7% for the latest quarter, and is generating negative earnings.

There may be more cruise travel to Cuba. So companies such as Carnival Corp. (CCL), and Royal Caribbean Cruises Ltd. (RCL) should also benefit. Carnival has a trailing price to earnings ratio of 21 and a forward PE of 12. The stock generates a yield 2.6%.

Royal Caribbean trades at 24.5 times trailing earnings and 10.5 times forward earnings. Earnings for the latest quarter spiked by an impressive 88% on a 4.6% boost in earnings. The stock pays a yield of 2.1%.

For a list of some Cuba related stocks, which includes such information as the PE ratio, the forward PE, the PEG, and the yield, go to

Author didn’t own any of the above at the time the article was written.


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