What's the trade as BRIC-based IPOs continue to grow?
BRIC is an acronym for Brazil, Russia, India, and China explains Tim Seymour.
I think these emerging markets could generate as much as 40% of global deal flow. And that should bode well for the old fashioned business of underwriting and spreads.
Top BRIC Underwriters '07
Amount % Of BRIC Underwriting
UBS $20.2B 17%
Morgan Stanley $10.6B 9%
Credit Suisse $9.6B 8%
Goldman Sachs $8.5B 7%
All the banks mentioned above should benefit from this phenomenon, Tim adds.
Of all those banks, I like UBS best, says Jon Najarian. But, I think investors should buy NASDAQ or NYSE Euronext because the exchanges should benefit from increased ADR transaction.
Guy Adami and Jeff Macke agree.
Also, keep an eye on China Mobile and CNOOC . Tim Seymour adds. As they go from Hong Kong to Shanghai – there may be a trade.