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Index of Private Company Performance Remains Strong at Q3 Close
Chicago, IL – October 30, 2007 – Revenue data reflects that the Private Company Index (PCI) held strong throughout Q3—managing to reach, and sustain for two months, an all-time Index high. This news comes fresh from the September 2007 index report which reveals a drop of less than one half percent, taking the PCI to 846 for the month.
The PCI, an index tracking monthly revenue trends from the use of goods and services for private companies throughout North America, is a tool that’s become increasingly popular with financial professionals who previously dealt mostly with public market indicators.
“Attention being garnered by the PCI simply reflects the vast investment diversification that Wall Street is creating out of sheer need,” says Larry P. Roches, President of Entrex Inc., which created and maintains the PCI. “Look around at the focus on developing new asset classes to satisfy the glut of investable dollars. Banking firms and institutions are competing nose-to-nose to create the coolest product with the right set of attributes--be it higher returns, income, principle protection, theme investing, etc. Everything is being measured in order to find a way to securitize it.”
Market timing is ideal as the PCI was created to measure performance in private sector companies ranging from $5-100 Million, a vast constituency of growing North American business who previously had a scant amount of representation to the capital markets. The markets’ lack of prior interest is intriguing because, according to PCI portfolio statistics, over the two-year life of the index it’s performed 420% higher than an average of the Nasdaq, Dow and S&P Small Cap 600 in the same time period.
Entrex CEO and founder Stephen H. Watkins shares, “Our portfolio represents companies that are in your community providing jobs and resources, with a local to global reach. There is lots of talk about a recession looming. Analysts speculate on market indicators pointing in that direction. The Private Company Index is the only tool that will tell us for sure. With its diversity of industry and geography we’ll clearly see when the general public slows its purchasing or use of services that they normally enjoy. It is a literal indicator of whether or not general spending habits are slowing. And, as of the September, they are not.”
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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