The stock price of Herzfeld Caribbean Basin Fund, Inc., the non-diversified, closed-end management investment firm continues to trade higher since the United States government started negotiations to normalize its diplomatic relations with the government of Cuba, as some see some ‘bubbly’ signs in the CEF.
Today, Herzfeld Caribbean Basin Fund is up by nearly 8% at the time of this writing.
Hersfeld Caribbean is fully prepared to invest in Cuba
Herzfeld Caribbean Basin Fund is trading on NASDAQ under the ticker symbol “CUBA.” The investment management is headed by Thomas Hertzfeld, who previously stated that his firm is “fully prepared to invest in Cuba once the U.S. government established its diplomatic relations with the Cuban government.
Herzfeld said, “With the resumption of trade in Cuba on the way, there will be a boom in that country.” He also believed that the economies of other Latin American countries will also benefit from a more open relationship between the U.S. and Cuba.
Some the stockholdings of Herzfeld Caribbean Basin Fund that would likely benefit from the normalization of diplomatic relationship between Cuba and the U.S. include Copa Holdings, Coca-Cola Fensa, Seaboard Corp and MasTec.
Last Wednesday, when President Obama announced the desire of his administration to stabilize the diplomatic relationship of the United States with Cuna, shares of Herzfeld Caribbean Basin Fund surged more than 35% to a seven-year high
U.S. ready to create more opportunities for Cubans and Americans
“I believe we can do more to support the Cuban people and our values through engagement. These 50 years have shown that isolation has not worked. It’s time for a new approach. We intend to create more opportunities for the American and Cuban people and begin a new chapter among the nations of the Americas,” according to President Obama last week.
In 1960, the United States imposed an embargo against Cuba when Fidel Castro overthrew the Batista regime. For decades, both countries have antagonistic relationship.
Herzfeld Caribbean declares special dividend
Last Friday, Herzfeld Caribbean Basin Fund declared a special dividend of $0.64 per share payable to stockholders on record as of Tuesday, December 30. The dividend will be paid on January 7, 2015.