Banking On BRIC


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%

Source: Thomson

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.

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Trader disclosure: On Jan 3, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO); Seymour Owns (F), (MER), (MSFT), (MBI), (INTC); Seygem Asset Managemetn Owns (SSL), (TTM), (CTCM), Gazprom; Gazprom Is On Pink Sheets In The U.S. But Trades On The Exchange in London; Jon Najarian Owns (AGU), (C), (DE), (GS), (MON), (MOS), (MRO), (POT), (GOOG), (YHOO), (VCLK), (DRIV), (SLB), (UBS), (USB), (IM), (N), (NEM), (MOO), (AG), (NYX), (NDAQ); Jon Najarian Is Short (PNRA), (SFLY), (TSO), (VLO), (YRCW); NBC Universal Is The Parent Company Of CNBC