The Economist article re Embargo

[M1903A1]

Originally Posted by tfar

(by the way, all those hardcore conservatives who are for the embargo and against a leftist political system even in the slightest - I agree Cuba goes too far but for some Europe is a socialist system- stop buying Cubans, you hypocrits).

It is our fundamental duty, as hardcore hate-red-unless-it's-inside-a-steak conservatives, to attack Fidel by burning his prime export commodity as much as possible.

[tfar]

Right on, let's smoke all his supply. If he were smart, he'd make cigars free for all Americans so the arch nemesis gets cancer.

What about the quality/economics question? Any takers?

Till

[Pendaboot]

I travel outside this country a lot, and I always leave with 16 cigars, since that is how many my favorite traveldor holds. I save the bands and always come back with just as many cigars, with the same bands on them, but maybe different cigars within. I do it because many of my friends enjoy the forbidden fruit of a Cuban cigar.

For the record: I have never smoked a Cuban that is better than Dominican, Honduran, or Nicaraguan cigars I can get for a lot less money. Money, for me, is not really an issue. I just do not like the heavy characteristics of Cubans. My favorite cigars are milder and smoother, and are ready to smoke the day I buy them.

I predict that when Cuban cigars are freely available here, and the market is level, which means, no forbidden fruit, all cigars are whatever is inside the wrapper, first the price of Cubans will go up a bit. Then those who had curiosity for forbidden fruit will have smoked them, and no macho advantage will obtain in favor of the Cubans, then the market will settle, with all cigars will be available at reduced price, since a fourth nation supplying will cause increased supply, and the Cuban mystique will be gone forever.

The fact is and will remain that state owned industry will never be able to out-compete capitalistic, family-owned businesses. Simple as that. The result of the barrier coming down will be, after the rush, for maybe a year or so then Cubans will be worth less than Dominicans. No sense arguing, we shall see what we shall see.

Perhaps letting them into our world will result in their socialist, top-down economy failing, and family owned cigar factories will establish themselves within Cuba. Then the availability of possibly superior raw material will result in a superior product. Back when Cubans made the world's best cigars, Dominican cigars were crap. Now Dominican cigars are great. (and Nicaraguan and Honduran cigars also.) Change is the one unchangeable thing about the world we live in. We shall see. But in a blind taste test I once held, Cubans scored last of the four nations which produce superior cigars.

[dennis569]

Originally Posted by M1903A1

It is our fundamental duty, as hardcore hate-red-unless-it's-inside-a-steak conservatives, to attack Fidel by burning his prime export commodity as much as possible.

I'm a hardcore gun toting conservative (voting for Ron Paul)
who thinks the embargo has been a stupid idea for many years.
As for living in a leftist country, welcome to the U.S.A.
Don't get me wrong, I love my country. Just saddened to see the way it's
going.

[Airborne RU]

Certainly there will be short run pressure felt by NC manufacturers. I wonder how they do elsewhere in the world? I don't think they do very well with perhaps a few exceptions, and then on a very limited basis. I my travels I have never seen a NC stick being sold at an international duty free store or B&M.

Perhaps many of the smaller companies will die out if the embargo is lifted? I would have to believe so, only a limited amount of smoking money to spread around.

However I believe that the trademark conflicts will prevent the instant availability of many Cuban marcas. Litigation ahoy!

Change is the imutable fact of life. I however sort of enjoy things the way they are.

[Pendaboot]

The way I see it, when Cubans are no longer on the forbidden list, they will have to compete head to head with NCs. I am not so sure that the price premium they sell for will be sustainable. Many people buy them simply because they are forbidden. And, FWIW, I have seen NC vitolas for sale all over Europe.

We shall see, since this embargo lifting will surely happen sooner or later.

[Tredegar]

My suggestion: Buy Imperial Tobacco LTD shares. They just bought Altadis SA. Altadis SA is the company that has a 50% stake in the Cuban cigar companies. When the embargo lifts their sales will probably increase dramatically. I may be wrong, but I have never lost money buying tobacco stocks.