Three Active Small Cap Video Technology Stocks for Traders: ENVI, KUTV & TRMR

Small cap video technology stocks Envivio Inc (NASDAQ: ENVI), Ku6 Media Co Ltd (NASDAQ: KUTV) and Tremor Video Inc (NYSE: TRMR) made some interesting moves today and in recent days or months – meaning its worth taking a closer look at all three to see if there might be opportunities for traders and investors alike:

Envivio Inc. Starting out in 2000 as an inventor of video encoding technology, Envivio Inc is a leader in software-based video processing and delivery solutions for any screen, with over 300 content and service provider customers worldwide. Specifically, small cap Envivio Inc says its solutions remove the boundaries of traditional television and enable operators to increase their revenues by providing viewers with best-in-class video quality and a compelling, personalized experience. On Tuesday after the market closed, Envivio Inc announced that it is powering premium live HD sports channels on Apple TV for a European Tier 1 service provider – helping to get the stock moving again. In mid March, Envivio Inc reported fourth quarter fiscal 2014 revenues of $12.5 million verses $11.7 million for the third quarter of fiscal 2014 and $7.7 million in the fourth quarter of fiscal 2013 while revenue for fiscal 2014 came in at $43.2 million verses $39.1 million for fiscal 2013. GAAP net loss for the fourth quarter was $2.0 million verses a net loss of $2.9 million for the third quarter and a net loss of $4.9 million for the fourth quarter of fiscal 2013 while the GAAP net loss for fiscal 2014 was $12.2 million verses a net loss of $16.9 million for fiscal 2013. This means that the deal announced earlier this week could help Envivio Inc close the gap between its top and bottom line as well as dent the impact from numerous so-called "shareholder rights" law firms who have started filing suits against the company in late February. On Wednesday, Envivio Inc rose 5.76% to $3.49 (ENVI has a 52 week trading range of $1.48 to $4.25 a share) for a market cap of $94.64 million plus the stock is up 5.1% since the start of the year, up 105.3% over the past year and down 62.1% since May 2012.

Ku6 Media Co Ltd. Founded in 2006 and the first Chinese video website listed on NASDAQ (in 2010), small cap Ku6 Media, through its premier online brand and online video website (www.ku6.com), provides online user generated content video uploading and sharing service, video reports, information and entertainment in China. On Tuesday, it was reported that Shanda Media, the controlling shareholder of Ku6 Media, will sell 1,938,360,784 or approximately 41% of company to Xu Xudong which currently owns about 70.5% of Shanda Media and is the founder of Sky Profit Limited. Xu is the founder and controlling shareholder of Sky Profit Limited, which also operates iSpeak, a social platform that allows users to engage in real-time online group activities through voice, text and video. Oddly, there appears to be no press release for the end of the year financials with Google Finance noting that Ku6 Media has reported revenues of $43.20M (12 months ending 2014-01-31), $39.10M (12 months ending 2013-01-31), $50.65M (12 months ending 2012-01-31) and $30.00M along with net losses of $12.19M (12 months ending 2014-01-31) and $16.93M (12 months ending 2013-01-31), net income of $0.14M (12 months ending 2012-01-31) and a net loss of $2.48M (12 months ending 2011-01-31). On Wednesday, Ku6 Media fell 7.33% to $2.78 (KUTV has a 52 week trading range of $0.98 to $3.90 a share) for a market cap of $131.41 million plus the stock is up 0.72% since the start of the year, up 172.5% over the past year and up 94.4% over the past five years.   

Tremor Video Inc. A leading provider of technology-driven video advertising solutions enabling brand advertisers to engage consumers across multiple internet-connected devices (including computers, smartphones, tablets and connected TVs), small cap Tremor Video's clients include some of the largest brand advertisers and agencies in the world. It appears that Tremor Video started rising just before noon today when the company announced it had hired Christine Kubisztal and Kevin Blaine to lead the Midwest and West Coast enterprise sales teams, respectively. Back in February, Tremor Video reported that fourth quarter revenue grew 11.7% year-over-year to $36.3 million with in-stream revenue growing 13% year-over-year to $35.5 million while 2013 total revenue grew 25.3% year-over-year to $131.8 million with in-stream revenue growing 28.7% year-over-year to $128.3 million. The fourth quarter net loss was $5.8 million compared to a net loss of $1.1 million for the same period one year ago while the 2013 net loss was $13.5 million compared to a net loss of $16.6 million for the full year 2012. The CEO sounded an optimistic tone by saying:

"We believe our results in 2013 leave us strategically well-positioned to continue to deliver high quality revenue growth, which is increasingly driven by programmatic and performance based buying. Furthermore, we continue to corner the market on premium desktop and mobile video content across all screens with new exclusive relationships with Meredith Digital, Sony Crackle and USA Today Sports."

Nevertheless, Tremor Video has largely disappointed investors since it debuted at $10 a share (below the expected range of $11 to $13) last summer. On Wednesday, Tremor Video rose 4.75% to $4.41 (TRMR has a 52 week trading range of $3.59 to $11.09 a share) for a market cap of $218.99 million plus the stock is down 15.7% since the start of the year and down 48.1% since last June.

Finally, here is a look at the performance of all three small cap video technology stocks:

As you can see from the above performance chart, investing in small cap video technology stocks is not for feint hearted investors as they tend to be volatile – something traders should take note of.