Private company revenues sustaining strong performance; capital markets still playing catch-up
Chicago, IL – May 22, 2009 Data compiled by the Entrex Private Company Index (PCI) reveals that revenue performance was up just over 1% this month over last - thus maintaining the growth spurt that propelled this diverse collection of $250 million and smaller private companies to an all-time index high last month.
PCI analysts indicate that this knowledge of the mid-market sector's revenue performance leveling is, in fact, significant because the group was able to sustain revenue levels that are 7% higher than the previous Index high attained in October 2008.
In correlation, the three major capital markets indicators (DJI: ^DJI, Nasdaq: ^IXIC, and Chicago Options: ^SML) each saw healthy growth during this period. The DJIA was up 7%, the Nasdaq Composite increased 12% and the S&P Small Cap 600 closed the month with a 17% jump.
Stephen H. Watkins, CEO of PCI sponsor company Entrex, clarifies the relevance of this information, "This capital markets growth spurt is good news for equity holders, but keep in mind that each index is simply working to climb back to higher values seen previously. These indexes are relatively flat for the year but still down between 27-32% over April 2008."
Analysts concur with this sentiment with the fact that October 2007 is considered the highpoint for the DJIA, Nasdaq Composite and S&P Small Cap 600 during the PCI's four year measurement period. And add that each indicator still needs roughly a 40% increase to match its value to investors at that point."
Watkins concludes that, "This is exactly why we're measuring revenue, of both private and public companies actually. It's a growth factor that's non-correlative to the equity capital markets in general and a metric that deserves wide attention from the financial community in order to truly assess national economic state and individual company success."
About the Private Company Index
PCI firms represent the sector of companies that now have a world-class marketplace for financial transactions based on Entrex TIGRcubs(TM). Published monthly, the Entrex Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance in the sector of private companies with $250 million or less in annual revenue. The PCI is recognized by Investment professionals and financial media as a leading and authoritative source on private company revenue performance (www.privatecompanyindex.com).
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