Prop Desk: Global Broadband Boom
If you think the recession has taken a bite out of broadband growth – think again. The market’s on fire!
When we talk about broadband, we’re talking about fast internet access. And new figures released by the Broadband Forum show that there are 429.2 million broadband lines globally as of the end of Q1 2009.
And nowhere on earth is that growth more robust than in Asia.
According to the website TelecomAsia.net, Asian customers now account for 45% of all broadband connections. Just take a look at the growth:
Broadband Growth in Asia
Percentage ChangeQ1 2009 vs. Q1 2008
Indonesia + 142%
India + 69%
Philippines + 61%
Vietnam + 49%
China + 24%
Worldwide + 4%
Source: Broadband Forum
In fact, they say China has now surpassed the US as the world's biggest market. Considering the explosion – how can you trade the trend?
OptionMonster Jon Najarian has some thoughts. He thinks Cisco, wins for supplying servers and routers. Also he suggests Sina and Shanda Interactive which provide content, largely for an Asian audience.
Tim Seymour prefers playing the broadband growth in China with China Unicom and China Mobile.
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Trader disclosure: On June 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (GS), (BTU), (AGU), (INTC), (MSFT), NUE); Najarian Owns (V), (CSCO); Najarian Owns (C) Preferred; Najarian Is Short (POT) Puts; Najarian Is Short (WFC); Seymour Owns (AAPL), (BAC), (BX), (EEM), (FXI), (F), (IYT); Terranova Owns (SDS), (XBI), (TER), (BTU), (ABT), MSFT); Terranova Is Short (XOM) Call Spread; Terranova Is Short (GENZ) Call Spread; Terranova Is Short (OIH)& (OIH) Puts; Terranova Is Short (RIG)& (RIG) Puts; Terranova Is Short (FCX)& (FCX) Puts; Terranova Is Short (RIMM)& (RIMM) Puts; Terranova Is Short (GENZ)& (GENZ) Puts; Terranova Is Short (IBM) Calls; Terranova OWns (BRCM) & Is Short (BRCM) Calls; Terranova Owns (POT)& Short (POT) Calls; Terranova Is Short (JPM)& Is Short (JPM) Calls; Terranova Owns (MS) & Short (MS) Calls; Teranova Owns (X) & Is SHort (X) Calls; Terranova OWns July Nat Gas Futures; Terranova Owns (DIS) Octovber Call Spread