When you see diversified investment plays that are regional special situation investments going parabolic, you have to wonder how high it can go and how long it can last.
Herzfeld Caribbean Basin Fund Inc. (CUBA-NASDAQ) is doing just that. This is one of the few ways that investors can try to bet on the eventual reopening of Cuba, and for that to happen the world’s longest ruling leader (Castro) has to pass away. Even then, it is unknown if his brother will open it up and try to normalize US-relations.
We noted this just on Tuesday as a backdoor play into Cuba as one of the only legal ways that US investors could even try to invest this scenario. It was at $14.71 then, and now it sits at $17.90. We first pointed this out back in Augustwhen shares were around $7.05 or so.
You should visit the website at http://www.herzfeld.com/to get more information. The fund recently gave a $1.00 dividend of long-term capital gains payable on January 12, 2007 and Thomas Herzfeld sold almost 30,000 shares at the end of December.
The new annual report is not yet out, but investors should know that the semi-annual report with a peg-date of June 30, 2006 from the company listed the net asset value at $8.08. That was up from $7.33 in the prior report.
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Jon C. Ogg
January 18, 2007
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