Cuba Industrial Stocks

Pebercan

Pebercan is a Canadian based company that is engaged in the exploration and development of oil and natural gas reserves in Cuba. Through its wholly owned subsidiary Peberco, the company holds oil and gas exploration and operation rights to the Canasi, Seboruco and Santa Cruz oil fields in Cuba. The Miami Herald reported recently that Cuba owes about $118 million to Pebercan and top executives are said to be proceeding cautiously.

Why this company might benefit from a post-Embargo Cuba: Once again, it is not the Embargo that is preventing this company from making money in Cuba, it is the Cuban government that is a TERRIBLE business partner and is known to use a company's assets and talent, not pay them what is due and then sometimes bringing the work "in house" under the complete control of the Cuban government.

TSX:PBC December 31, 2008 price: $1.40 Canadian

Petrobras

Petrobras (Petroleo Brasileiro SA) is a Brazilian based company engaged in the exploration, exploitation and production of oil from reservoir wells, shale and other rocks, and in the refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons in addition to other energy related activities. Petrobras has 109 production platforms and 15 refineries. It operates 31,089 kilometers of pipelines and has a joint partnership with Cupet, the Cuban government owned oil company.

Why this company might benefit from a post-Embargo Cuba: Since this company is already drilling for oil in Cuba, it has a huge headstart on all US based oil companies that most assuredly want to drill for oil in Cuba when it is allowed by the US government.

NYSE:PZE December 31, 2008 price: $24.49

Repsol

Repsol is a Spain based oil company engaged in all aspects of the petroleum business including exploration and production, refining and marketing along with chemicals, gas and electricity. Repsol has leased some oil exploration blocks off Cuba's north shore and has done some drilling for oil in Cuba with mixed results.

Why this company might benefit from a post-Embargo Cuba: The Cuban government wants Repsol to drill for oil in Cuba but I don't think the company likes the business deal they have with Cuba. There is the risk of finding oil and the risk of getting paid by the Cuban government. So, wait for a free market friendly Cuba to emerge, most likely post-Castro before this company makes any money in Cuba.

NYSE:REP December 31, 2008 price: $21.51

Sherritt

Sherritt is a Canadian based resource company involved in the production of nickel, cobalt, oil and electricity and the development of coal as an energy resource. Oil and Gas production is derived from near-shore deposits in Cuba, which are explored and developed from land-based drilling locations. The Miami Herald reported recently that Cuba owes Sherritt more than $390 million and top executives are said to be proceeding cautiously.

Why this company might benefit from a post-Embargo Cuba: Yet again, Cuba is holding the company back from making money in Cuba, not the US Embargo. Wait for news from Cuba that they are opening up their economy and allowing foreign investment based on international business practices. Until that time, very few companies can operate at a profit in Cuba.

TO:S and SHERF.PK December 31, 2008 price: $3.16 and $2.54

YM Biosciences

YM BioSciences is a Canadian based company that is engaged in the licensing and commercialization of drug products and technologies from original research. One of the company's late-stage products, nimotuzumab is a humanized monoclonal antibody that targets the epidermal growth factor receptor (EGFR) and is approved in several countries for treatment of various types of head and neck cancer. A 2006 agreement between YM Biosciences and the Cuban Center for Molecular Immunology (CIM) established a joint venture for testing and marketing nimotuzumab in the USA and Canada, Europe, Japan and other countries of the Pacific Rim.

Why this company might benefit from a post-Embargo Cuba: This Canadian drug company appears to be working closely with the Cuban government's biotechnology ministry to research and develop drugs that may eventually be approved for the US market if/when the US trade Embargo is lifted.

YM.TO December 31, 2008 price: $0.46

Cuba Infrastructure Stocks

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Note: US investors should seek compete legal advice when investing in companies that generate revenues from operations in Cuba since ownership of stock in such companies may violate US Treasury restrictions.