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Private Company Index Has Substantial Increase During Capital Markets' Volatility
Chicago, IL – September 12, 2007 – The Private Company Index (PCI) crested to an all-time high of 850 according to August private sector revenue reports. This is a 14.8% increase from July 2007 and the second highest monthly increase in the history of the PCI. This confident performance is in direct contrast to the general faltering exhibited by the capital markets during August, which managed to squeeze only slight increases in the same timeframe – as measured by the Dow, Nasdaq and S&P Small Cap 600 which all saw increases of only 1-2% each.
PCI portfolio companies were not surprised by August gains and were pleased with the result. According to early summer polling by PCI management, the various company CEOs were looking forward to a strong season, so these revenue indicators did not disappoint.
Case in point is ticket broker Ticketcity.com as CEO Randy Cohen explains, “[We] had an amazing summer quarter. We beat expectations on sales and margins with strong college football sales, US Open tennis sales and the rugby world cup.” Also to the positive, NouvEON Technology Partners CEO, TJ Eberle, cited a 30% increase over July 2007.
This news doesn’t eclipse the fact that some sectors of the marketplace are faltering. The PCI portfolio is comprised of geographically and industrially diverse companies so some are showing losses based on economic trends.
Ken Lebersfeld, CEO of the Florida based Capitol Lighting, shares, “Florida sales are slower than expected. The housing market slide is deepening in the moderate range; New Jersey stores are starting to recover from this affect. However, internet sales are still going strong.”
The PCI, tracking monthly revenue data, marked a 52% increase in 2006 and is currently trending toward a similar gain for 2007. Over the life of the PCI, the portfolio is collectively showing an average annual performance of 36%.
Stephen H. Watkins, CEO of PCI sponsor Entrex, adds, “It’s times like these when we get a look at the interconnectivity between Main Street and Wall Street. During a time of such immense capital market stress, a period where anyone listening to the news could easily think that America was sliding into deep decline, yet we see this incredible growth from the private sector. While certain factors can affect overall economic conditions, it’s interesting to see how disparate these two streets are from one another”
About Private Company Index (PCI):
Sponsored and administered by Entrex, Inc. (www.entrex.net) the PCI is a proprietary benchmarking tool used to measure overall performance growth, and decline, in the private sector. It is recognized as the most authoritative source on sector performance by practitioners in the financial markets.
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