Friday File: ‘Cuba Portfolio Foundation Stocks,’ Venture update, REITs, and What I’m Thinking of Buying

What's Nicholas Vardy pitching as plays on Cuba?

By Travis Johnson, Stock Gumshoe, March 11, 2016

I’ve got a few thoughts to share with you about GSV Capital and a few other areas where I’ve seen questions or interest from readers recently, but first I want to get a quick teaser solution or two out for my favorite Irregulars….

One pitch that’s sent a lot of questions our way of late, though the ad has been around for at least a few months, is the Cuba pitch from Nicholas Vardy — he lays out a long argument for why sanctions will be lifted more fully this year, why Cuba is such a huge opportunity because of its lack of development and connection to the world over the last 50 years, and how he thinks you can set yourself up to make 65X your money on some “Cuba Portfolio Foundation Stocks” that he thinks look good now (as well, presumably, as other Cuba-connected ideas that might occur to him in the future).

I won’t run through the ad, but the broad opportunity is pretty well understood — President Obama is intent on opening the Cuban economy to the US and lifting sanctions, and has relaxed many restrictions already… and the objections to re-engaging with Cuba have gotten much more tepid of late, particularly as power has passed to Fidel’s brother Raul, so the trend seems to be firmly in place and the US business community is clearly pushing for it (especially the tourism folks, but others as well). Cuba is a relatively small nation, about the same land area and population as Ohio, but that’s still a large group of people who are generally educated and healthy but don’t have cars or cell phones or many consumer products, and it’s a big caribbean tourist destination that’s so very sadly missing the expanses of waterfront Marriotts and Hiltons, ubiquitous McDonald’s Restaurants, and shiny new Fords and Toyotas that are the gift of globalization. It’ll be fascinating to see how Cuba re-opens to the world, and to the US in particular, but there’s certainly some commercial opportunity.

So we’ll jump straight through to the clues about the stocks he likes:

“CUBA PORTFOLIO FOUNDATION STOCK #1:
“THE LITTLE AIRLINE WITH THE GREAT BIG CUBAN ADVANTAGE

“Everyone’s salivating over the profit potential of a sector that’s sure to take off first once the embargo and travel restrictions on Cuba are lifted…

“Tourism.

“In most years lately, ...

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