Castro's Revolting Revolution

Some two hundred miles from ritzy Miami, Cuba this week marked 50 years of communist rule as a society plagued with widespread shortages of basic necessities, including beef, cooking oil and, of all things, toilet paper.

Although the country is given 100,000 free barrels of oil each day from Venezuela, energy consumption must also be carefully rationed. As was reported this week in the AP, this has led Cuban President Raul Castro to propose the widespread use of oxen for use in farming

Oxen? Indeed. The means of crop cultivation used thousands of years ago is now being touted by Cuba’s leaders as the bright new answer to the country’s collapsing economy.

Meanwhile, come Sept. 1, thousands will gather in rural Decatur, Ill., for the 56th annual Farm Progress Show, an agricultural exhibition featuring the latest advancement in tractors, combines and other agricultural equipment. Among those showcasing their products will be John Deere (DE), highlighting achievements such as their 7030 Premium Series Tractor, which features a massive 2300 RPM engine combined with cutting-edge fuel-saving efficiency.

John Deere 7030 Tractor

Photo: John Deere

While I’m by no means a farming authority, I imagine that it’s a lot easier and more productive to plough a field from the cab of a high-tech tractor than by trudging behind a team of smelly oxen.

Turns out it’s not only easier, but more profitable as well. For example, the U.S. Department of Agriculture estimates that the average farm household net income in 2008 was $86,864. Published reports peg the average Cuban’s annual income at – wait for it -- $240 a year. Only 2% of the population has access to the Internet.

By every metric, life in Cuba is worse today than it was 50 years ago. In communist countries devoid of capitalism and the profit motive, time doesn’t just stand still -- it moves backward. Keep that in mind as we debate the future of American health care.

We were scouting Michael Jackson memorabilia months before the singer’s untimely June death. And while Jackson will always be memorialized for his monumental impact on music and pop culture, he can also be remembered as the first notable recording icon to open the Nasdaq stock market, which he did on Aug. 30, 2001.

ABC News called it “one of the more bizarre moments in stock market history”, but noted the rising trend of mixing entertainment and finance. Since then, dozens of celebrities ranging from Mandy Moore to Anna Kournikova, to chef Mario Batali have all been tapped for the honor, either at the Nasdaq or the New York Stock Exchange.

Nipping up against a new 52-week high is Advantest (ATE), the semiconductor test equipment manufacturer we profiled in May. Other semiconductors, names like Cree (CREE), ON Semiconductor (ONNN) Power Integrations (POWI) and NetLogic Microsystems (NETL) have also come along for the ride.

And Away We Go

Advantest Corp. (ATE) – 1 year

At the time of writing, Hoenig’s fund held shares of Advantest (ATE). Positions can change at any time.