J. Carlo Cannell‘s Cannell Capital holds about 1.70 million shares of Envivio Inc (NASDAQ:ENVI) valued at $3.0 million through its affiliated funds. The holding represents about 6.12% of the company’s outstanding shares. In a recent filing with the Securities and Exchange Commission, Carlo Cannell has outlined his plan for a ‘vote no’ campaign against Envivio Inc (NASDAQ:ENVI), whereby shareholders will be urged to withhold votes in the upcoming re-election of the company’s directors. The fund manager plans to post a lengthy presentation outlining how the current board members have destroyed shareholder value. Cannell plans to follow up with a dissident proxy solicitation in the 2016 election.
Carlo Cannell graduated from Princeton University, and worked at Dakin Securities, an investment bank in San Francisco before he launched his own fund in 1992. The market value of Cannell’s public equity portfolio stood at $319.86 million at the end of the first quarter, with the technology sector representing 33% of the holdings.
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Cannell initiated a position in Envivio Inc (NASDAQ:ENVI) during the second quarter of 2013 with just 54,700 shares, which it built upon in the following quarters. The fund manager’s main contention with the company’s management is fairly obvious. Envivio Inc (NASDAQ:ENVI) has been posting losses for the last three fiscal years, while turning a paltry profit of $140,000 in the year just before the current trend.
Established in 2000, Envivio Inc (NASDAQ:ENVI) is one of the pioneers in the video-over-IP technology that forms the backbone of today’s content delivery businesses. The company’s clients include content owners, telecom operators, and cable & satellite companies.