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Private Company Index Has Two Year Returns 420% of Public Market Performance
Chicago, IL – September 13, 2007 – The Private Company Index (PCI) marks its 2 year anniversary this month showing a gain 420% greater than the average of the Dow, NASDAQ and S&P Small Cap 600 indices performance in the same 24 month period.
Stephen H. Watkins, CEO of Entrex, the PCI sponsoring organization, suggests: “We’ve been trying to explain how there is little correlation between private companies’ economic growth and the trading growth of Wall Street. There are obviously macro relationships, but retail and business consumption continues -- even if Wall Street has a bad day, week or month.”
“If you were to put $1,000 into each index the PCI would have a $976 return compared to an average return of only $234 with the other indices PCI figures reflect over four times the return of the others!”
This cash-value type of analysis and illustration is a new principal being applied to established PCI data. Confident that two years of data provides a healthy-term benchmark for private sector performance, Watkins feels that monetizing the information is a powerful statement to which even non-financial types can relate.
The Entrex PCI is recognized as the authority on private company performance in North America, tracking revenue trends from goods/services of private companies via monthly gross revenue reporting. It provides the financial markets with the ability to objectively measure private business activity allowing for historical analysis, comparison and predictive forecasting.
Watkins continues, “The ability to measure is critical to capital providers and investors. There is plenty of investable cash out there but even those with high risk tolerances still require some level of transparency and comparability to potential returns. This information is the starting point for main stream capital to consider applications of private company portfolios in their financial offerings.”
“We, at both Entrex and the PCI, have been sharing this data with numerous alternative investment funds in an effort to focus dollars on Main Street companies. We all need to create investment vehicles which support the companies bringing economic and employment growth to our nation; likewise, we should be benefiting from the investment risk -- they are not mutually exclusive.”
About Private Company Index (PCI):
Sponsored and administered by Entrex, Inc. (www.entrex.net) the PCI is a proprietary benchmarking tool used to measure performance of private companies. It is recognized as the most authoritative source on sector performance by practitioners in the financial markets.
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