GO
Loading...

Ring in the New Deal

Deals. Deals. Deals. M&A was on the minds of the Fast Money Traders this morning. Karen Finerman and Tim Seymour were each weighing how to set up their portfolios to best profit from consolidation in the New Year. “I think we are going to see a lot more deals,” said Metropolitan Capital’s Finerman.

Tim Seymour, EmergingMoney.com, was banking that the global mining industry would be especially acquisitive in 2011. Rio Tinto , one of the world’s largest mining and exploration companies for aluminum, copper, diamonds, iron and gold, was “combing the world for deals,” Seymour said.

BHP Billiton was also likely to be an acquirer, Seymour said. The global mining and minerals company still has at least $13 billion to put to work, even after announcing a $10 billion share buy-back. The company had tried to buy Potash earlier this year for nearly $40 billion.

Options Action trader Mike Khouw was watching the technical indicators driving deal making. Historically, deal activity reached its zenith when prices were high, not when assets looked cheapest, Khouw noted. In the New Year, companies may excersize more prudence, he said. “Companies are going to start taking a look at risk and… whether these mergers are a risky situation,” he said, striking a note of caution on betting too heavily on M&A.

For the best market insight, catch 'Fast Money' each night at 5pm ET, and the ‘Halftime Report’ each afternoon at 12:30 ET on CNBC.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

CNBC.com with wires.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.