News
These press releases and announcements are provided as a service to the press and others for historical research purposes only. The information contained in these press releases is accurate only as of the date of the release and the Company undertakes no obligation to update the materials in this section after the release date.
Private Company Performance is Only Half That of Public Markets for May 2007
Chicago, IL – June 19, 2007 – Private companies, which bring the bulk of economic and employment growth to our nation, claimed only 43% of the performance realized by the NASDAQ and Dow Indices for May 2007. This data comes from the Entrex Private Company Index (PCI) a sector benchmarking tool generally recognized as the most authoritative source on company growth and private industry performance by investment bankers, broker-dealers and M&A professionals.
With that said, May’s 13 point increase in the PCI represents a 1.6% growth spurt to 803—the second highest reading in PCI history. And, despite this month’s PCI annualized growth rate of 20%, YTD performance for portfolio companies reveals a 37% annualized rate—nearly double that of the public market performance.
Entrex CEO, Stephen H. Watkins, examines this phenomenon, "It is interesting how the public indices, representing only investor sentiment, grew so substantially. Whereas PCI growth, a tool tracking consumption of private sector goods and services across North America, reflected real economic performance less than 50% of these investor-sentiment indices. In a nutshell, Wall St. benchmarks appear disparate from actual performance on Main St.”
Click image below for full release.
###
