Private company revenue performance eclipses 12 month stock value performance
Chicago, IL – Jan. 22, 2008 The Entrex Private Company Index (PCI) reports its 12-month growth performance at 29.7%, based on December 2007 to December 2008 monthly measurement. Not unexpected, the major equity capital market indices saw decline this past year. The DJIA, Nasdaq Composite and S&P Small Cap 600 were each down between 30-36% during the same period, marking a dramatic loss in the value of the underlying stocks.
The PCI, comprised of a diverse group of $1-250 million companies in a variety of industry and geographic sectors, experienced annual growth exceeding 25% for the third consecutive year. Though, 2008 performance does show appropriate deference to a year of overall financial decline. In 2006 and 2007 the PCI’s growth marked 52.3% and 38%, respectively.
Based on this data, analysts modeled an investment of $1000 into each the PCI, DJIA, Nasdaq Composite and the S&P Small Cap 600 (see graph). The consensus is that it presents a substantial argument for revenue-based investing, chiefly for its far greater consistency than equity values that are so susceptible to volatility based on investor sentiment.
Entrex CEO, Stephen H. Watkins, shares his views on the implications of the data; “Retail and institutional Investors who take advantage of our newly issued revenue-based security structure, called the TIGRcub™, will see returns based on actual revenue performance versus the investor sentiment trends that serve as a driver to the value of public securities.™
He adds, “Our modeled investment comparison shows that these revenue-based returns would have outperformed the public market in the good times. More importantly, even during a trying economic and financial year like 2008, the TIGRcub™ would have outperformed the public markets—making it truly The Security for Market Leaders™.”
About the Entrex Private Company Index (PCI)
PCI firms represent the sector of companies that now have a world-class marketplace for financial transactions based on Entrex TIGRcubs™.
Published monthly, the Entrex Private Company Index is a proprietary benchmarking tool that measures revenue performance in the sector of private companies with $250 million or less in annual revenue. The PCI is recognized by Investment professionals and financial media as a leading and authoritative source on private company revenue performance. Visit the Private Company Index website.
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