Entrex Private Company Index indicates unexpected downward revenue trend for mid-market companies
Chicago, IL – June 23, 2009 June Private Company Index (PCI) data reveals that the mid market sector's revenue performance dropped this month, as compared to last, with the index falling 6%. This is an unexpected change in performance from this diverse group of $5 million - $250 million private companies, as the past three calendar years saw a slight to moderate increase during the same measurement period.
Coupled with the fact the three major capital market indicators each saw increases during this past month, it’s an especially confusing sign from the private sector. Analysts noted a slight 1.5% increase in the S&P Small Cap 600 and a moderate 3-4% increase in the DJIA and the Nasdaq Composite index.
Stephen H. Watkins, CEO of PCI sponsor, Entrex, shares his views on the meaning of the June data; “In four years of study, we typically see the private company group move in a positive direction while the public company values are taking a beating. This kind of non-corollary behavior has become an index trademark. This is one of the rare times that the public group held their own while the private takes a down cycle.”
The positive PCI news is that when analysts compare the index's position at May 09 to May 08 revenue performance is up 31% during this 12 month period—indicating that even in this tough economic climate this diverse set of mid-market companies has, in aggregate, experienced healthy revenue growth over the last year.
The PCI is a powerful indicator of the role of private companies on the current health of U.S. markets. Its continued growth indicates the importance and strength of private companies as major players in U.S. economic recovery.
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. www.privatecompanyindex.com
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