Whether you are a career investor, farmer or a military veteran who just received his gratuity and looking for where to pitch his tent, you would beyond the promises of your possible investment portfolio, most likely want to put your money in a company that has strong roots in the market it operates.
Which accounts for why with all the potential of the global beverage drink market, the world’s most successful capitalist, Warren Buffet invest his money in Guinness & Coca Cola and not Kasapreko or Bella Ginger Drink.
Only a few investors’ class known as, Venture capitalists and Angels are said to be fans of largely weak firms.
This set of investors feel it’s their responsibility to spot these struggling but potentially block buster companies.
Usually with companies whose shares are traded publicly on the stock exchange, Market capitalization is the sum of a firm’s current market value - computed by multiplying the number of outstanding shares (held by the shareholders) with the current market price per share.
It is based on an ongoing expert economic valuation of a company and often does not represent exactly how much a buyer would be willing to pay for it.
However, while Nigeria, Ghana and a reasonable number of other African economies rather witness mostly banking financial institutions with market capitalization that run into multi millions of dollars (with a few exceptions), the figures on the global market are stunning.
Only the combined market capitalization of Microsoft and Amazon alone is nearly twice the value of Africa’s largest economy – Nigeria, which stands at an estimated US$500 billion.
Now, having led the league for over two years, with the likes of Microsoft, Berkshire Hathaway, Exxon Mobil and other well-known global brands trailing behind, Apple Incorporated is on course to take a leap into the US$1trillion dollar or above market capitalization over the next 12- 18 months.
Expert analyst at RBC Capital Markets, Amit Daryanani told the business journal – investors.com that “Apple has potential to achieve a $1 trillion market cap and even surpass that over the next 12 to 18 months". Adding that they “see a scenario where in fiscal 2019 Apple sustains $12+ EPS and, assuming the valuation framework remains stable/improves, it should get Apple stock toward $192 to 195 a share, which would equate to market cap over $1 trillion."
With shares currently trading at an average over US$153 per share on the global market, if this projection is realized Apple Inc. will make history as the first company to reach the Trillion dollar capitalization mark.
Perhaps another prize for democracy and its capitalist free market: the small brain child of Steve Jobs and Wozniak in 1976, marked by a historic trend of transitions from developing and selling small computers to becoming in the 2017 a synonym for technological innovation that has most significantly affected the mobile phone industry – with the likes of smart phone, MacBook, etc. comfortably to its credit, the Cupertino technology giant (as it’s popularly known) is ready for its biggest catch ever.
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