Activist Cannell Capital Issues Presentation on Envivio Inc (ENVI) and Urges Shareholders To Vote “No”

All in all, as shareholders have been constantly disappointed by the management’s and the board’s performance and poor communication with them, Cannell proposes a set of measures aimed towards improving the situation at Envivio Inc (NASDAQ:ENVI) and bringing the stock price back. The investor considers that one of the priorities should be the preservation of cash acquired from the IPO and that excess costs that top 100% of revenues should also be reduced. Therefore, in order to achieve these goals, the only possibility for shareholders is to vote against the current board, which, according to Cannell, has mismanaged their money and destroyed a large portion of the company’s value.

However, since Envivio Inc (NASDAQ:ENVI) has only $50 million in market cap, it does not hold the potential to attract  a lot of investors. Overall, among more than 700 funds from our database, only five disclosed long positions in Envivio with a total value of $10.43 million as of the end of March. Among them, the largest stake is held by Edward Gilhuly and Scott Stuart‘s Sageview Capital, which owns some 2.63 million shares, followed by Cannell and Chuck Royce’s Royce & Associates with 751,900 shares.

Cannell Capital holds a relatively small equity portfolio, valued at some $320 million and focuses on small-cap companies, which are usually less followed on Wall Street. Over the years, Cannell has engaged in proxy fights and activist campaigns involving companies like ValueVision Media (currently known as EVINE Live Inc (NASDAQ:EVLV)) and Procera Networks Inc (NASDAQ:PKT).

The full presentation of Cannell about Envivio is available below:

Cannell’s Presentation on Envivio

Disclosure: none