Stock Prices Way Above Revenue Performance of Dow Index Companies
The Private Company Index released their mid year comparison of indexed Dow Stock Prices to indexed revenue performance. It appears stock prices exceed revenue performance for the first time in 15 years - to much money chasing to few stocks.
Chicago, IL, September 4, 2014 (Newswire.com) - The Private Company Index, founded by Entrex in 2006, released its mid-year study today comparing the Dow Jones Industrial Stock Price to the Dow Jones “Top Line” revenue performance.
“The updated June 30th 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 Private Company Index.
The updated June 30th study shows how the continued supply of investment capital keeps pushing stock prices higher --- beyond the indexed revenue performance of the underlying companies
Stephen H. Watkins, CEO, Private Company Index
“It is an interesting problem when you look closely at it. If the relative number of public companies stays about the same – it is simple supply and demand -- where else can the growing capital base go except to increase the stock price” he continued.
Bryan Larrison of Hyde Park Wealth Management suggests “Our US Capital Markets needs to expand beyond the 3500 actively traded stocks into product offerings that bring new businesses and new investment opportunities for investors; we can’t keep throwing more money at the same old things – it’s a broken model”.
Watkins suggested; “Wall Street Exchanges represent such a small percent (less than 1/10 of a percent) of the 26,000,000 companies in the US. We have to create an efficient capital market system to provide our employment and economic growth companies access to capital”.
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.
