Private company revenues climb to all time high amid news that recession could be extended
Chicago, IL – Apr. 21, 2009 Data compiled monthly by the Entrex Private Company Index (PCI) reveals that revenues were up 18% for this month over last; according to this diverse collection of $250 million and smaller private companies located throughout North America.
This marks the first period of growth in calendar year 2009 and is dramatic enough to earn the March PCI figure the title of “Record High” — a benchmark that’s 11% higher than the 2008 Index close. Analysts note that this spike behavior is historically common for the Index group during this period. 2006 and 2007 periods saw jumps of similar magnitude while 2008 marked a less sever rise, but growth nonetheless.
Non correlative to this data, April 20 news from of the Conference Board’s Index of U.S. Leading Economic Indicators reports another decline for the same period. Analysts are widely theorizing that this means that U.S. recession will continue into the second half of 2009.
Stephen Watkins is CEO of PCI Sponsor Company, Entrex, and has strong views on the implications of this news for investment markets. “Even during a period of 18 months sited for a recession, the diverse PCI group of companies has attained revenues that look to signal a complete comeback. To date the Index has made up for recent periodic losses and hit a new peak.” Watkins states.
He continues, “What this news really brings to the forefront is the demand to reevaluate investment criteria and structures. Although the stock markets in general also rose this month, investors have not recovered value from losses dating from the recessions’ beginning at December 2007. Conversely, if using a revenue-based investment tool that tracked to a company’s top line earnings, investors would have seen a PCI-type portfolio recouping all declines experienced in the past year.”
About the Entrex Private Company Index (PCI)
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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