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The Gisele of IPOs?

Brazil is a hot spot right now, and not just because of its winning bid for the 2016 Summer Olympics. Cramer on Monday was more excited about that country’s markets and economy.

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Brazil’s gross domestic product this year should grow at a rate of 5% to 6%, and the Bovespa stock index in 2009 is up 63%. Not to mention, the financial-services industry “is booming,” Cramer said. And that’s where he sees an opportunity.

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“The sexiest thing coming out of Brazil right now is not Gisele” Bundchen, the supermodel, Cramer said. It’s the IPO of Banco Santander’s regional operations there. Banco Santander Brasil will price as an American Depository Receipt on the New York Stock Exchange on Tuesday under the symbol BSBR, and he thinks that investors should find a way to play it.

Cramer’s recommendation? Buy STD. As much as he likes the Brazilian banking business, he feared the IPO was too expensive, leaving little upside after the deal. Buying the parent company, though, offers a safer way to play Brazil’s growth.

This trade is just like the IPO of Wynn Resort’s Macau division. That offering finally put a hard valuation on Macau, allowing investors to better value the whole company. Banco Santander is no different. Right now STD isn’t getting full credit for its Brazil operations, but the IPO will change that. Once BSBR starts to trade separately, Cramer said, STD is “going to get a boost,” maybe 30% or more.

Banco Santander offers stability, diversification and the chance to profit from a sexy IPO. That makes it the safer bet for investors looking to trade it.

“Even if the IPO turns out to be a flop,” Cramer said, “you still own a fabulous international financial institution.”

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