Private Company Index Compares 15 Years of Dow Jones Stock to Revenue Performance.
The Private Company Index (PCI) has tracked the revenue performance of private businesses for nearly a decade. Today the PCI released its research which compares 15 years of the Dow Industrial Index's company's Revenue Performance to Stock Price.
Online, June 24, 2014 (Newswire.com) - The Private Company Index, founded by Entrex in 2006, released its 15 year study today comparing the Dow Jones Industrial Stock Price to the Dow Jones "Top Line" revenue performance.
"The study shows a fascinating and remarkable meeting of revenue performance and stock price today: unseen over the past 15 years." said Stephen H. Watkins CEO of the Private Company Index.
"Historically we've always seen the Dow Jones Industrials' stock price, investor sentiment if you will, so disparate from the Dow Industrials revenue performance. Today's connection seems to imply the enormous amount of capital in the market, potentially combined with the Federal Reserves actions, which have created a supply and demand cycle within the capital markets beyond any time in recent history".
Jay Goth of Redtail Capital suggests: "Despite equity pundits claiming that the stock market is not oversold, it is easy to see from this chart that while revenues are declining equities are not accurately reflecting actual market activity. In fact, as pointed out before, the 'great recession' actually saw a revenue jump. The fact that revenues are on a decline while equities are accelerating in price tells me that we could be in for a difficult time in the equities markets as actual company performance is analyzed and reported."
The effort of the Private Company Index to track revenue performance of private companies led to Entrex creating the TIGRcub Security (Top-Line Income Generation Rights Certificates) which is believed to be a right sized security for private companies providing risk adjusted yield to investors while offering fair cost of capital to businesses.
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Tags: Entrex, Jay Goth, PCI, Private Company Index, Stephen H. Watkins