November Entrex Private Company Index Data Reflects Unseasonal Decline in Overall Sector Revenues While Maintaining YTD Growth

Printer-friendly versionPDF version

Chicago, Illinois (PressReleasePoint) - The Entrex Private Company Index (PCI) dropped 7 percent based on November over October data from North American private companies with annual revenues up to $250 million.

This decreased revenue display in the private company sector was simultaneous to a drop in the major capital markets indicators (DJIA, Nasdaq Composite and the S&P Small Cap 600), which each saw declines between 5-12% in November over October performance.

Analysts further point out that 2008 PCI data does go against historical trends by making such a dramatic drop in Q4. In both 2006 and 2007 the Index rose sharply over the final three months of the year, indicating very strong Q4 revenues for this group.

This marks the first decline in three months for the PCI. The Index’s YTD performance is positive 23%, reflecting overall revenue growth in this sector during 2008.

Stephen H. Watkins, CEO of PCI sponsor company, Entrex, explains in more detail; “Comparatively, the PCI’s 2008 performance is not on track with its own past growth history. 2006 and 2007 saw overall aggregate growth of 31 and 33 percent, respectively. However, this 23 percent growth is respectable when considered in the context of the greater financial, economic, consumer and business spending cuts witnessed this year.”

He goes on to say that he thinks the real news is the comparison between revenue performance, in general, and stock value performance of the capital markets indicators.
The DJIA, Nasdaq Composite and the S&P Small Cap 600 not only showed decline for the third measurement period in a row, but are spending a second month dwelling even below their original baseline established in Q3 2005. YTD losses for these indicators range between 30-35 percent with three-year losses ranging from 18-31 percent.

In summary, Watkins states, “If it were possible to invest in either revenue or stock value, would you rather see a three year total of 84 percent growth, as PCI data demonstrates, or be looking at a portfolio that declined over three years as just mentioned?”

About the Entrex Private Company Index:
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 (PCI) 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 (www.privatecompanyindex.com).