Shares of the Herzfeld Caribbean Basin Fund, Inc CUBA are up on Tuesday afternoon, following The White House’s announcement that President Obama intends to remove Cuba from the government’s list of “State Sponsors of Terrorism” – a list that includes only three more counties: Iran, Sudan and Syria.
This is a major step towards the normalization of the relation between the U.S. and Cuba, and arrives less than a week after Obama met with Cuban President Raul Castro in Panama.
In a press statement, Secretary of State John Kerry said that “in December 2014, as a critical component of establishing a new direction for U.S.–Cuba relations, the President directed the State Department to launch a review of Cuba’s designation as a State Sponsor of Terrorism and provide a report to him within six months. Last week, the State Department submitted a report to the White House recommending, based on the facts and the statutory standard, that President Obama rescind Cuba’s designation as a State Sponsor of Terrorism.”
Related Link: Wait, What? CUBA Fund Doesn't Actually Own Any Cuban Assets?
The State Department determined that Cuba qualified for a removal from the list, as it “had not engaged in terrorist activity in the past six months — a criterion for designating a country as a state sponsor of terrorism,” a New York Times article explains.
Although the Herzfeld Caribbean Basin Fund does not actually invest in Cuban companies, it does however, invest in U.S. companies that could explode in value if the United States and Cuba began trading. This is why shares of the Herzfeld fund are surging on the news, something that seems to happen every time the U.S. gets a little bit closer to resuming trading with Cuba –check out two articles that illustrate this point below.
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