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Petróleo Brasileiro S.A. - Petrobras Message Board

  • a123sky123 a123sky123 Mar 11, 2014 11:42 AM Flag


    3 Stocks That Could Reach A $1 TRILLION Market Cap
    Tuesday, February 21, 2012 11:30 AM
    By Ryan Fuhrmann
    It has yet to happen, but some day a public company could reach a total market capitalization of a trillion dollars.

    Think it can't happen? Consider that in this era of a global economy, where emerging nations such as China, India and Brazil will soon join the ranks of developed nations (and new emerging countries will rise), there is a chance for a certain class of elite companies to become even more dominant than ever before.

    But first, let's talk a little about market cap and why a trillion dollar market cap would be so astounding...

    Market cap is simply the number of shares outstanding of a stock multiplied by its current share price. These days, many companies, such as Pfizer Inc. (NYSE: PFE), JP Morgan Chase (NYSE: JPM) and BP (NYSE: BP), sport market caps in excess of $100 billion. Fewer still, are companies with market caps in the hundreds of billions -- General Electric Co. (NYSE: GE) and IBM (NYSE: IBM) are good examples.

    Even fewer have what it takes to continue growing at the rates needed to reach a trillion-dollar market cap. But I've come up with three companies that just might do it.

    1. Petrobras (NYSE: PBR)
    Business: Energy
    Market capitalization: $191 billion
    P/E ratio: 9

    Back in December, I wrote that this Brazilian energy giant Petrobras had the potential to reach a total market capitalization of $1 trillion. The stock is up a modest 4% since then and still possesses what I think is huge potential for shareholder gains in the coming years.

    For starters, its track record of value creation is there. In the past decade, average sales have been up about 17% annually, while annual earnings have advanced at an even higher rate, close to 23%. This has pushed sales up from less than $23 billion in 2010 to more than $140 billion in 2011. For the coming year, analysts expect another solid increase to $150 billion and earnin

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