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Entrepreneurial Companies See Revenue Increases During What Experts Declared a "Stalled" US Economy in January
Chicago, IL – Feb. 25, 2008 – Private Company Index (PCI) calculations for month-end January 2008 transcended any concerns of stagnation with a 3.4% increase based on portfolio companies’ January top-line revenues. Placing the Index reading at a three-year high of 994, this starkly contrasts traditional capital markets indicators which were uniformly down over the same period. These tumbles included the Dow at 4.6%, the S&P Small Cap 600 at just over 5% and Nasdaq with a near 9.9% drop.
Stephen H. Watkins, CEO of PCI sponsor company, Entrex, explains his view; “It’s important to realize that only certain sectors of our financial infrastructure are damaged from 2007’s macro and micro economic hits. These may be large sectors, with far reaching aftershocks, but it’s not a sign of complete American financial ruin.”
“This is the exact market paradigm that allows the Private Company Index to shine. A slight loss would have been expected in January, especially as the PCI closed December at a previous all-time high. Any downturn would have been seen as leveling off. Instead, our diverse group of companies show an increase in revenue performance over twice what they saw from November to December – a time when consumer spending is ostensibly at it’s highest.”
The PCI portfolio is comprised of what they call local and regional “Main Street” private companies, situated throughout North America, which have less than $100 million in annual revenue. According to PCI historical trend data this sub-sector of the private market place is showing significant revenue growth – 33% as portfolio in calendar year 2007.
Watkins adds, “These are the first-round companies who will feel any cessation in consumer or business spending. Fact is, it simply hasn’t happened yet. These CEOs are positive about growth plans for 2008 and confident that they can maneuver around whatever global or national economic circumstances may develop.”
About the Private Company Index:
Published monthly by Entrex, Inc., the Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance and activity in the $1-$100 million private company sector. 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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