Carlo Cannell's brutal letter to Sportsman's Warehouse (SPWH)
by HedgeFollow
Carlo Cannell, the famous hedge fund manager at the helm of Cannell Capital, sent a brutal letter to the CEO of Sportsman's Warehouse (NASDAQ:SPWH), criticizing the board and their multiple failures.
Most notable in Cannell's letter is the ridiculous amendment to the bylaws, Article 2.14(a), which states that "Special meetings of the stockholders of the Corporation may only be called by the Board". The board voted to approve and effect this immediately, locking out activist investors (and all other investors) from calling a meeting to tackle the rampant issues facing the company. The amendment is on page 10 of their bylaws here.
Cannell demanded the board take a 60% and 80% reduction in cash and equity compensation, respectively, and criticized the company's performance and lack of leadership. Sportsman's Warehouse has not had a CEO for 5 months. The full letter is here.
Cannell Capital is the largest shareholder of SPWH, owning 3.74M shares comprising about 2.71% of their portfolio.
Most notable in Cannell's letter is the ridiculous amendment to the bylaws, Article 2.14(a), which states that "Special meetings of the stockholders of the Corporation may only be called by the Board". The board voted to approve and effect this immediately, locking out activist investors (and all other investors) from calling a meeting to tackle the rampant issues facing the company. The amendment is on page 10 of their bylaws here.
Cannell demanded the board take a 60% and 80% reduction in cash and equity compensation, respectively, and criticized the company's performance and lack of leadership. Sportsman's Warehouse has not had a CEO for 5 months. The full letter is here.
Cannell Capital is the largest shareholder of SPWH, owning 3.74M shares comprising about 2.71% of their portfolio.