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'CUBA' Fund Up 27% On Renewed Talks Between U.S. And Cuba; What Other Stocks Are Moving?

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'CUBA' Fund Up 27% On Renewed Talks Between U.S. And Cuba; What Other Stocks Are Moving?
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The Herzfeld Caribbean Basin Fund, Inc (NASDAQ: CUBA) was up about 27 percent Wednesday (hitting a seven-year high and record volume) on the back of renewed talks between the United States and Cuba to open economic ties and tourism.

The fund, managed by Thomas Herzfeld for the past 15 years, invests in several companies in the Caribbean, but focuses on U.S. companies that could explode in value if the United States and Cuba began trading. As reports about the; Obama administration preparing to announce far-reaching modifications to the country’s policy regarding Cuba, bulls appear to be piling up to acquire the fund’s stock.

Related article: US News & World Report: The 10 Strangest Mutual Funds

Here is a look at other stocks that appear to be responding to the update.

MasTec, Inc. (NYSE: MTZ)

MasTec is a $1.5 billion market cap infrastructure construction company. As the Herzfeld fund’s second-largest position, accounting for more than 6 percent of its total assets, shares were also up 6.5 percent at $20.10.

Stifel Nicolaus issued a Buy rating on December 15, setting a price target of $25.50, while Barclays recommended an Overweight position in November, fixing a $33.00 price target.

Copa Holdings, S.A. (NYSE: CPA)

Copa is one of the fund's largest holdings, comprising around 8.5 percent of its portfolio. Shares were up 5.8 percent at $93.22.

Sherrit Intl Copr R (OTC: SHERF)

Sherrit is a $600 million market cap Canadian natural resources company that operates mainly in Canada and Cuba, but also has a significant mining project in Madagascar. As the possibility of an end to the embargo on Cuba becomes more real, the stock gained more than 21 percent, recently trading at $2.46.

JetBlue Airways Corporation (NASDAQ: JBLU)

JetBlue started navigating some U.S.-Cuba routes a few years ago. The stock has gained about 2.5 percent, trading recently at $14.79.

Royal Caribbean Cruises Ltd (NYSE: RCL)

For reasons that are similar to those of airliners, Royal Caribbean shares returned 5 percent Wednesday afternoon, last trading at $80.79.

Carnival Corporation (NYSE: CCL)

In a similar movement to Royal Caribbean, Carnival shares were up more than 3 percent on the news at $44.44.

Deutsche Bank issued a Buy rating on Wednesday, accompanied by a $48.00 price target.

Image credit: Mary Newcombe, Flickr

Posted-In: Cuba President Obama Thomas HerzfeldLong Ideas Politics Movers Trading Ideas General Best of Benzinga

 

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