APPLE AND PETROBRAS COULD REACH $1 TRILLION. article
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.
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
n a national security meeting one of Bush's advisors informed him that we had lost six Brazilian troops in Iraq.
The President immediately dropped his head and sighed deeply, in obvious pain.
"What's the matter Mr. President?" the advisor asked.
The President looked up and said "I don't even know how many a brazillion is."
Petrobras has managed to sink all pre-salt wells with 100% success.
that's the most important achievement that makes me believe pbr will be $50-$100 stock. Subsidies will go away. Small, fixable glitches will go away, but the fact that pre-salt is a reality makes petrobras so valuable for long long term.