Interesting WSJ article on Habanos, SA

[DRed409]

http://www.wsj.com/articles/smoked-cubas-cigar-industry-isnt-ready-for-its-american-moment-1463767535

I appologize if you can't read the article, I'm not sure if you need a subscription to see it.

Interesting stuff in the article, makes some assumptions, but the charts are interesting as well (swipe right/left), as is the interview with the farmer.

I thought CORO's at sub $400 are a strong buy, but this reinforces my stance. Yes, they want more production, but without major change it will not happen.

 

[boltman]

Good article, thanks for sharing. A switch to a free market economy is the answer to the tobacco production problem in Cuba.

 

[plumber1965]

Great read thanks for sharing

 

[Chaapa'ai]

Really makes you rethink the purchase of Cuban Cigars if it's only helping Castro and our taste buds. It's sad really. So much of what we 1st world folks buy is made at the expense of others well being. Food, shoes, clothes, toys, electronics, cuban cigars, etc, etc...

 

[Mr. McSquirelly]

http://www.wsj.com/articles/smoked-cubas-cigar-industry-isnt-ready-for-its-american-moment-1463767535
Interesting stuff in the article, makes some assumptions, but the charts are interesting as well (swipe right/left), as is the interview with the farmer.

Very interesting read. That's the first time I've ever seen any hard numbers like that. What's interesting in the graphs is that from 2006 to the present production decreased from about 220 million cigars to 91 million. Yet annual revenue has risen in that same time from $350 million to $428 million?!?!? How does a company cut production by 70% and become almost $100 million more profitable?

 

[PamunkeyHub]

Great read! Thanks for sharing it.

 

[Mr. McSquirelly]

Really makes you rethink the purchase of Cuban Cigars if it's only helping Castro and our taste buds. It's sad really. So much of what we 1st world folks buy is made at the expense of others well being. Food, shoes, clothes, toys, electronics, cuban cigars, etc, etc...

I agree, but the argument is that something is certainly better than nothing.

 

[Jfire]

Very interesting read. That's the first time I've ever seen any hard numbers like that. What's interesting in the graphs is that from 2006 to the present production decreased from about 220 million cigars to 91 million. Yet annual revenue has risen in that same time from $350 million to $428 million?!?!? How does a company cut production by 70% and become almost $100 million more profitable?

By using the tobacco from regular production cigars and slapping a second band with RE and LE on it. That is exactly how.


Sent from my iPhone using Tapatalk

 

[MikeZ]

8 years ago a good price for a box of Siglo VI was $400. They seem to be around $550 today. But the cost of NC's has gone way up too. Boxes of high end NC"s selling for $325? This makes some CC's look like a bargain!

 

[iergeni]

Good article, thanks for sharing. A switch to a free market economy is the answer to the tobacco production problem in Cuba.

The answer is proper management. Good management would make things work even in the state-controlled economy, or at least work better than they do atm.

A switch to a free market economy alone doesn't solve things by itself, as was seen when Eastern Europe switched to capitalism. In the worst case, foreign companies would invest in farming operations and export the tobacco to be aged & rolled elsewhere, leaving Cuba with even less revenue than now.

What Cuba needs is someone who will pull their ass out of their head often enough to see how a business should be run, and keep it out there when the foreign money starts pouring in.

 

[boltman]

The answer is proper management. Good management would make things work even in the state-controlled economy, or at least work better than they do atm.

A switch to a free market economy alone doesn't solve things by itself, as was seen when Eastern Europe switched to capitalism. In the worst case, foreign companies would invest in farming operations and export the tobacco to be aged & rolled elsewhere, leaving Cuba with even less revenue than now.

What Cuba needs is someone who will pull their ass out of their head often enough to see how a business should be run, and keep it out there when the foreign money starts pouring in.

Please give me an example of proper management when the state controls it. I'm sure if you try hard enough you can come up with a few. But If you are being intellectually honest you also can come up with a plethora of examples of waste, fraud and abuse when 'the state' runs a company. In spite of your example of Eastern Europe, I would take my chances with capitalism.

 

[wrench_bender]

Thanks, that was a great article.

 

[JR Kipling]

I agree, but the argument is that something is certainly better than nothing.

+ 1

Just imagine that place without the theft of a thriving industry producing a consumer product that outsiders desire -
North Korea comes to mind