Let’s Talk About Florida East Coast Railway and the Obama Cuba Policy

PenneyVanderbilt

The new U.S. policy that may open up trade opportunities with Cuba would make FEC a very attractive stock, because the 351-mile railroad that starts in Jacksonville is the only rail line that connects to the port of Miami. Actually, it makes FEC attractive as a buyout candidate even if it doesn’t go public.
Back when Florida East Coast Industries Inc. was a public company, its stock was always sensitive to hints that trade may be opening up with Cuba. Of course, that never panned out.

Port of Miami Port of Miami

One investment manager who constantly talked up FEC was Thomas Herzfeld of Miami Beach, who runs a mutual fund called the Herzfeld Caribbean Basin Fund.
The Herzfeld fund invests in companies with economic ties throughout the Caribbean, but its particular focus is Cuba. The fund’s ticker symbol is “CUBA.”
Herzfeld began buying shares of FEC in the early 1990s and its…

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