Friday File: ‘Cuba Portfolio Foundation Stocks,’ Venture update, REITs, and What I’m Thinking of Buying
by Travis Johnson, Stock Gumshoe | March 11, 2016 5:32 pm
What's Nicholas Vardy pitching as plays on Cuba?
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Norwegian Cruise Lines $NCLH ==> correction needed…
My monthly ticker typo — thanks for catching!
There is nothing there to buy, and all this will take a long time. Airlines and cruise companies have plenty of destinations with beautiful beaches. Havana looks like Dresden. How can the agricultural machinery even be sold without political change? They don’t have money to buy anything. For 50 years they are all living on ration tickets and $20/month.
While GSV does own stake in a lot of the big name start ups, they’ve diluted their shares by almost 15 million in the past 4 years. That’s dilution of almost 300%. A perfect example of how to destroy shareholder value. What’s the guarantee that they won’t dilute it even more?
Or you could invest in The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) although it is standing at a rather optimistic 11 % premium (share price $7.14 compared to $6.44 NAV). While some of its holdings make sense as part of a play on Caribbean tourism the whole basis of the fund depends on Cuba re-establishing itself as a reliable trading partner with the world including presumably property rights and the rule of law. If the forthcoming presidential elections produce a slightly gutsier President than the present one perhaps this might even involve compensating US companies who had their property confiscated in 1959. Seems more of a clever promotion than a sensible investment.