5 stocks ready to crack the $1 billon mark

Financial journalist and commentator on 3AW and Sky Business
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Achieving a $1 billion market capitalisation (stock market value) on the Australian Securities Exchange (ASX) is a big deal – both in status terms and index terms.

There are only 205 companies on the ASX valued at more than $1 billion, meaning that companies around that level are in the ballpark for inclusion in the S&P/ASX 200, which is rebalanced quarterly S&P/ASX 200 – and the constituent companies get the benefit of the guaranteed buying of the indexed vehicles, such as exchange-traded funds (ETFs) and index funds that hold the index.

Cracking the $1 billion mark does not guarantee that a company will be added to the S&P/ASX, because there are liquidity and volume criteria as well; but $1 billion in market capitalisation usually gets noticed by more brokers and analysts than followed the stock before that point. In short, a stock becomes a serious player when it achieves a ten-digit market capitalisation.

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