Check out the form 13D filed on 2-26-15 by Casey Capital. Hidden at the end is a letter written to company demanding changes.
"February 26, 2015
Board of Directors
1110 Lake Cook Road, Suite 220
Buffalo Grove, Illinois 60089
Gentlemen:
KC Gamma Opportunity Fund, LP is a significant shareholder of Essex Rental Corp ("ESSX" or the "Company") that currently beneficially owns 1,461,634 shares, representing approximately 5.9% ownership of the Company. We made our initial investment as we believed ESSX to be undervalued versus its leading position as a provider of lattice-boom crawler crane and attachment rental services. Our investment thesis also included our belief that the Company could be worth significantly more to a strategic or financial buyer.
History of Underperformance
The Company suffers from a material valuation discount due to the market's loss of confidence in the Company's ability to create shareholder value. The book value of the Company has dropped from $5.33 on December 31, 2008 to $2.35 on September 30, 2014. Chronic stock underperformance and declining book value have contributed to the public market's negative perception of the Company. The lack of any improvement in the value of the business has caused the market to significantly discount the stock versus the $5.27 orderly liquidation value of the Company.1
ESSX has dramatically underperformed the broader market indexes over the last 1, 3, and 5-year periods. The current trading price of ESSX shares is near its all-time low.
We believe the Company can take steps to enhance its financial condition and prospects as well as the value of ESSX shares. We recommend the Company:
1. Add shareholder representation to the Board. Kevin Casey, portfolio manager of KC Gamma Opportunity Fund LP, would bring a fresh and independent perspective to the Company's direction and should be elected to the Board. As our representative he would seek to maximize returns for all shareholders.
2. Cut Office Expenses. The Company should terminate the arrangement with Hyde Park Real Estate LLC ("Hyde Park") regarding the office lease. We believe the Company should not pay rent expense for New York City offices when its headquarters are in Buffalo Grove, IL.
3. Evaluate Strategic Alternatives. The Board should evaluate strategic alternatives for the Company. In our opinion, the public market is applying little value to the Company's assets. The market has lost confidence in the Company's ability to execute its business plan and create shareholder value.
Essex is a valuable asset in an industry that has seen significant consolidation recently. We believe numerous financial and strategic buyers would be interested in discussing strategic alternatives with the Company. Financial buyers could be attracted to the ability to buy assets at or below liquidation value, to acquire a public platform business, and to obtain significant net loss carryforwards (NOLs) at no additional cost. However, we believe the Company would be more attractive to a strategic buyer because the Company offers:
1. Cross-selling opportunities in customer base and various crane assets;
2. Net loss carryforwards that a profitable company can utilize; and
3. Synergies from removing public company expenses, which we estimate to be between $3-6 million.
The Board Must Take Action Immediately
We believe there are other shareholders that support our ideas. We insist the Board immediately add shareholder representation, terminate the lease with Hyde Park, and engage a financial advisory firm to conduct a comprehensive review of strategic alternatives. We look forward to having a thoughtful and productive engagement with the Board to discuss these matters. However, if the Company fails to consider our requests, we will not hesitate to seek substantial Board changes at the next annual meeting of shareholders. You may reach us at (646) 825-4630.
Sincerely,
Kevin Casey
News 
Market Data 
Discover 
