Are Your Investments Doomed by Overfunded Public Markets?
NewsUSA
A recent 15-year research report comparing the Public Dow Index companies' revenues to their stock price by the Private
Company Index (PCI) seems to show how there is too much money chasing too few stocks, leading to unparalleled public market stock price increases.
"The study shows how the continued supply of investment capital keeps pushing stock prices higher - beyond the indexed revenue performance of the
underlying companies,” said Stephen H. Watkins, CEO of the PCI (www.PrivateCompanyIndex.com).
If you look at the indexed data, for the first time in nearly two decades the indexed stock price is above the indexed revenue of the Dow Index
Companies, which means investors are buying up stock and elevating its price well above the relative top-line revenue performance.
What's worse is that despite the influx of capital driving indexes and stock prices higher for public companies, private companies, which generate
the economic and employment growth of our nation, are forgotten by investors.
Bryan Larrison of Hyde Park Wealth Management agreed. "Our U.S. capital markets need to expand beyond the 3,500 actively traded stocks, and into
product offerings that bring new businesses and new investment opportunities for investors."
There are 26 million companies in the U.S., but only 500,000 have annual revenues between $5 million and $250 million. These privately held companies have
capital needs above what friends and family can offer, yet operate below the level to attract Wall Street investment banks. To this point, it has become
almost impossible for small businesses to attain the capital they need to grow. And there’s opportunity.
Enter Entrex (www.entrex.net), a company that creates a global capital market system for entrepreneurial companies by aligning revenue performance
for investors through their patented “Top Line Income Generation Rights Certificates" - or TIGRcub Securities.
Entrex learned through its PCI, a compilation of historical revenue performance of a cross section of U.S.-based privately held companies,
how vibrant the growth of this area is.
Entrex supports nationwide brokers who help entrepreneurial companies with their capital needs through its TIGRcubs, which it believes are a
"right-sized" investment product delivering fair returns to investors and appropriate cost of capital to companies.
Learn more at Entrex.net and PrivateCompanyIndex.com.
Dimitri Kanellopoulos
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