http://profitabletradingtips.com/trading-investing/companies-that-will-benefit-from-improved-us-cuba-relations
Companies That Will Benefit from Improved US Cuba Relations
When President Obama announced that the USA will normalize relations with Cuba several stock and funds did very well. There are early stock market winners according to reuters.
A tiny mutual fund based in miami, a clutch of cruise line operators and a canadian natural resources company are the early winners in the obama administration’s surprise move on wednesday to thaw relations with cuba.
While the cuban economy is small, with gross domestic product of roughly $70 billion, according to the world bank, comparable to that of hawaii, investors nevertheless scrambled to capitalize on the new dynamic between washington and havana.
Shares of the $34 million (£21.72 million) closed-end fund, which trades on nasdaq under the ticker “cuba,” soared by as much as 47 percent to a seven-year high after reports of the breakthrough early on wednesday. its holdings include around 60 securities that fund manager thomas herzfeld believes would benefit from an eventual end to the u.s. economic embargo against cuba.
There already are US companies doing business with Cuba. As the details of the progressive normalization of relations works out traders will find that more and more companies will benefit from improved US Cuba relations and trading their stocks could be quite lucrative.
What Does Cuba Need?
Cuba needs to move into the 21st century in telecommunications. And, luckily, the United States government is going to allow telecoms do business in Cuba.
the u.s. government said wednesday that it will start allowing telecommunications companies to set up equipment and other infrastructure projects needed to begin phone and internet services in cuba, a vital commercial component of its historic reopening of diplomatic relations with the island country.“today, the united states is taking historic steps to chart a new course in our relations with cuba and to further engage and empower the cuban people,” according to a statement released wednesday by the white house.
only about 5% of cubans have access to the internet, the white house noted. “the cost of telecommunications in cuba is exorbitantly high, while the services offered are extremely limited,” it said.
Cuba has an outdated phone system and virtually no internet services. This is an economy the size of Hawaii that will benefit from US company expertise. Companies that will benefit from improved US Cuba relations will be those that get contracts in Cuba.
Who Is Interested?
An article in the Pittsburg Business Times is indicative of the interest in exploring business in Cuba.
u.s. rep. mike doyle, d-pittsburgh, said wednesday’s announcement that cuba could be opening for business is good news for pittsburgh companies.
4. http://profitabletradingtips.com/trading-investing/companies-that-will-benefit-from-improved-us-cuba-relations
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