WSJ-Investing in Cuba : Good Luck With That

The Herzfeld Caribbean Basin Fund, Inc. (CUBA) Stock Chart

Wall Street Journal (blog)/  By Joe Light

While American companies have been mostly shut out of Cuba’s economy, companies based in Canada and Europe have stepped in, said Luis Maizel, senior managing director of LM Capital Group, a San Diego investment advisory firm. Such companies include Air France-KLM, Total and hotelier Sol Melia.

Since the Cuban operations of big multinationals are relatively small, regulators won’t punish Americans who buy shares, says Ferrari. A Treasury spokesman said that the department would only get concerned if the company’s primary business was with Cuba or if an American investor took a controlling interest in the company.

But that makes any boost that these companies will get from the Cuban economy minuscule, notes Mr. Maizel. Large U.S. companies that would open Cuban operations after an end to the embargo would probably also only see a small benefit to a resumption of trade, he says.  More >>