A core competency of the Skanderbeg Capital Group is identifying investment opportunities that have yet to be realized or recognized by the mainstream community.  We have been heavily focused on the green economy for the past several months but have maintained the notion that there are always opportunities to be had, sometimes in markets that are not receiving huge amounts of media attention (as the ‘green’ market is today).  Some investment opportunities lie in waiting, operating in markets that are seldom talked about, yet potentially profitable.

A proven method of finding such opportunities is to focus on the players.  Some people have a knack for envisioning, planning, structuring, and operating successful ventures.  Sometimes it is that simple.  Obviously different markets demand different talents and every situation is unique, but you can get a real incite in to how things might unfold by tracing the track record of the individuals involved.

One such figure Skanderbeg Capital has kept tabs on is Edward Wright.  Skanderbeg interviewed Mr. Wright back in October.  We talked to him about his extensive experience in the retail sector and his success with some of the world’s most recognized brands.  Edward Wright is the CEO of CRH Medical Corporation, a publicly traded (TSX.V:CRM), Vancouver-based medical treatment technology company.

Before we get right in to the company details, let’s talk a bit more about the team.

Alongside Edward Wright is another key figure we’ve been keeping our eyes on. This fellow is the founder of CRH and is a world-renowned visionary in the space: Dr. Anthony Holler, Chairman of the Board at CRH.  Dr. Holler was one of the original founders and Directors of ID Biomedical, an innovative, Vancouver-based biotechnology company focused on vaccine research, development, manufacturing, sales, and marketing.  Dr. Holler eventually took the helm at ID Biomedical and, as CEO, led the company from a $50 million market capitalization to the $1.7 billion valuation placed on the company by the 2005 GlaxoSmithKline buyout.

CRH Medical Corporation

This particular company offers a non-surgical medical treatment option for an issue that affects 10.4 million Americans, with around 1 million new cases reported every year.  It is estimated that by age 50, “half the population will have experienced this potentially painful condition,” yet it rarely even earns a mention in everyday conversation.

The condition is hemorrhoids and the treatment being offered by CRH Medical Corporation is claiming to be the new “gold standard” in treatment options.

Approved by the FDA in 1997, CRH Medical’s patented proprietary technology has seen widespread adoption across a developed network of Gastroenterologist (GIs) partners in the US. GIs perform an estimated 14 million colonoscopies every year and symptomatic hemorrhoids are diagnosed in around 15%-20% of these cases, with most going untreated.  In 2008 CRH technology was adopted by more than 90% of GIs trained by the Company, offering them the ability to provide an effective, value-added hemorrhoidal treatment option to their patients.  Additionally, CRH partner physicians have reported “significant increases in new patient volumes as a result of CRH’s marketing support of their Practices, including marketing materials, website listing, and other practice development activities” and a corresponding increase in practice revenues.

CRH has employed two key “commercialization strategies”:

1. The implementation and operation of a network of geographically dispersed Centres of Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids and utilizing CRH technology.
2. The development of an extensive “Partnership Program” whereby CRH “technology, treatment protocols, operational and marketing expertise” are offered as a turnkey package to partner physicians.

CRH is working to establish itself as a global leader in this field.  They’ve already proven that the technology is well accepted by those exposed to it and will be actively expanding on their numbers.  The market for this type of solution is truly enormous.  CRH most recently announced their first foray into the Chinese market.  Teaming up with Rayfield Technologies, a well-established sales network force, CRH will have access to 1.3 billion Chinese who have an even higher prevalence rate than North America.

Currently sitting with a market capitalization of approximately $80 million, it will be very interesting to see how things pan out for CRH.  It is clear, though, that with proven figures like Edward Wright and Dr. Anthony Holler leading the way, CRH is in a good position to succeed.

By Tyler Harbottle – Online Communications, Skanderbeg Capital

October was a very exciting month for Skanderbeg Capital.  I thought it prudent to provide a quick rundown on what made this month so successful for us.

Nova gets a big cash refund

In late September Nova Uranium (with proposed name change to Secova Metals) announced its 100% acquisition of the Gold Coin gold property in Arizona.  Preliminary evaluation of the property shows some great potential with low-cost, surface bulk tonnage and a very favorable setting.

Not long after the announcement of this acquisition Nova received some great news.  Every once and a while big surprises in this industry turn out to be good ones.

Nova received a $1.37Million cash refund from the Quebec government in accordance with the province’s mineral exploration tax credit incentive system.

With a new, exciting gold project, a positive cash position, and debt free balance sheet – Nova is positioned to funnel October’s momentum into the long term via its new corporate mandate to acquire new mineral properties of merit.

Two installments of ‘The Skanderbeg Interview Series’

Though we never officially gave it a name, Skanderbeg has been seeking out thought leaders in fast moving fields of particular interest.  This October we caught up with two such individuals to get the skinny on two increasingly important topics: green investments, and rare earth elements.

Edward Wright – Greenscape Capital Group (TSX.V: GRN)

In early October I sat down with Edward Wright – a man of unparalleled class and integrity.  Edward recently took major steps toward changing the way companies do business.  He sits on the board of Greenscape Capital Group (more on this one later) where he hopes to shape and mold prevailing corporate culture into something greener.  We got a taste for what drove him to join Bryan Slusarchuk and a team of seasoned leaders and innovators in their quest to help businesses around the world ‘go green’.

David Matousek – Playfair Mining (TSX.V: PLY)

Skanderbeg Capital also got the opportunity to chat with David Matousek, a director at Playfair Mining Ltd. Playfair has recently become engaged in the hot Rare Earth Metals market.  Mr. Matousek spoke candidly about Chinese involvement in this important metals market and how Playfair will be able to hold up to such protectionist policies.

Coincidentally, the recent and growing trend of individuals and businesses making the “green transition” (some of them via Greenscape’s Eco Consulting Division) has contributed to the rare earths market.  As we learned in our interview with Mr. Matousek, “every hybrid car produced requires more than 25 pounds of Rare Earths.”  This is a significant factor considering some of these metals trade for upwards of $8,000/gram.

Look for more interesting and informative interviews in the near future….

Tirex’s Mirdita District continues to put out good numbers

Early this October Tirex announced the addition of a second drill to the Mirdita mining district – a step out drill hole on the previously undrilled East Slope Trend.  This large trend was first detected when Tirex flew Albania’s first ever airborne geophysical survey.

Tirex CEO Bryan Slusarchuk led a team of analysts to view the Mirdita property and upon his return, had this to say,

“Getting onto the property always reinforces the fact that the potential here is not simply the development of a good mining project, but rather is the development of a Mining District. A district of projects and a district with strong potential in copper, zinc, gold and silver.”

Skanderbeg Capital Launches Stock Pick Page

Something that we strive to accomplish here at Skanderbeg Capital is to alert readers and investors to interesting and potentially lucrative investment opportunities that might otherwise be missed.  In light of this goal, we recently launched our Stock Picks page where you can find Skanderbeg stock picks with commentary on when and why they were picked.

Greenscape Capital goes public, former BC Green Party leader joins up

October was a very exciting month for Greenscape Capital Group.  On October 23rd Greenscape was listed on the TSX venture exchange under the symbol GRN.  After a successful $0.50 IPO, the stock gained 20% on the first day of trading, with good trade volume.

Not long after the GRN IPO, it was announced that Christopher Ian Bennett, former BC Green Party leader was to join the Greenscape board of directors. The Addition of Mr. Bennett adds an incredible amount of depth and diversity to an already eclectic board.

It should be very exciting to watch this company grow and develop at the hands of such capable leaders and on the wave of green consumer and investor sentiment.

Can’t wait to see what November has in store….

Skanderbeg Capital recently caught up with Edward Wright, a Director at Greenscape Capital Group, to chat about the emerging market in environmentally friendly luxury retail products.

This post is slightly longer than the usual, but well worth the read.

Read time: ~10 minutes

The bio:

Mr. Wright, until 2006 was the Executive Vice President of Retail in North America for Cartier, a top international luxury brand with a storied history dating back to the 1800’s. Prior to Cartier, Mr. Wright held the position of President of Baume & Mercier since 2002. While at Cartier, Mr. Wright was responsible for the development and operations of the entire North American retail division.  His success and extensive experience in the luxury retail business coupled with his more recent shift to the “green” investment world positions him at the forefront of an ever growing trend of investors.

The Q and A:

Skanderbeg Capital Group (SCG): A new focus of yours, via a directorship with Greenscape Capital, is on eco-luxury products in the retail sector; what is the common tendency of consumers in this market and how sustainable is that tendency?

Edward Wright (EW): “We’re on the cusp of a major shift in consumer tendency – consumer mindset really.  I don’t believe it’s a question of whether or not the tendency is sustainable or not, rather it’s a question of how long will it take for this shift become mainstream and generally accepted?

We’re really just seeing the beginnings of the consumer knowledge base for sustainable and environmentally friendly products.”

SCG: What led you to delve into sustainable/environmentally-responsible business in the first place?

EW: “I’m predisposed to have some fundamental inclination towards sustainability and the green shift.  I have children – when you have kids you think much more deeply about your individual impact on the environment, the lasting impact of your actions, even the impact of your investments.

Having spent a lot of time in Europe, where the green movement is much more established, I have a unique perspective on what is possible and I’m excited about the prospects.  I know it’s just a matter of time before what I’ve experienced there, migrates to North America.

I have a friend who heads up a global eco-packaging company based out of China and over the course of many discussions regarding international markets for sustainable consumer goods, he suggested I meet his contacts who are at the forefront of the green shift here in Canada.

I met Bryan Slusarchuk and was immediately enthralled with the idea and the chance to be a part of Greenscape Capital Group.  I was given an early introduction to Tina Hoffer, Managing Director at Lela Designs.  Her passion and keen business sense were immediately apparent.  I remember thinking that emerging companies like Lela, with a bit of capital behind them, would really take off.

I recognized something that luxury retail conglomerates already do all over the world outside the green space – that is, you can really thrive as a group if you can capitalize on the synergy created between multiple ventures with the same ultimate philosophy.

If the fundamentals are solid – then each of companies can play off one another to benefit themselves, but also the group as a whole.”

SCG: Do companies “go green” from some inner moral inclination, or is this move merely a recognition of the fact that there is indeed a trend?

EW:  “I think it is largely a moral issue.  For many, it really is something that they believe in.  However, there are those who will see this shift in consumer mentality – the shift towards sustainable and environmentally responsible products – as an opportunity to capitalize, in a PR sense, on consumer ignorance.

We are on the cusp of this shift – in North America  – and people have expressed a concerted desire to make a change, but they don’t always know the difference between a truly responsible company, and one who’s just done some fancy PR work.

SCG: In light of this, the same question can reasonably be applied to individual investors. What drives an investor to seek out environmentally conscious and responsible companies for potential investment?

EW: “Not every investor is so morally driven.  Many, of course, are just looking for returns.

Regardless of what the investment community thinks or from where their investment decisions come from, in a short period of time this shift in mentality will drive global demand for these types of products.

SCG: So, what constitutes a truly green investment? For example, does the multinational oil conglomerate that spends millions on land reclamation and rehabilitation achieve such a status? Or, must a company be purpose built for environmental protection or stewardship? – and where does Greenscape fall in the mix?

EW: “A business has to be realistic about its approach.  If you are a purpose built green company who specializes in wind power generation, for example, then that’s one thing.  But if you’re, say, a retail goods company, you have to consider your responsibility to your shareholders.  If, for example, you need to package your product in such a way that it is marketable, and for this particular product that requires a small plastic window to highlight it’s qualities.  Well using plastic, a fundamentally detrimental material for the environment, was necessary in this case.  But overall if you’ve managed to manufacture it, package it, box it, and ship it in the most environmentally responsible way possible (save for the plastic window) then that’s something.

A truly green company, whether purpose built for environmental stewardship and innovation or just a plain old retail goods manufacturer, has to have the right intentions and the right short, medium, and long term goals and purpose.”

SCG: How do eager, well-intentioned investors see through the fray, identify truly environmentally conscious products and organizations, and avoid falling victim to deception or misdirection?

EW: “Well you need to do your due diligence.  Today, the availability of information is remarkable.  One’s ability to research a product, a corporation, or a stock puts so much power in the hands of the individual.

However, I think the government plays a role here too.  There needs to be some well defined standards in this space, some accreditation procedures to really hold the corporations accountable.  Al Gore has been tirelessly advocating this type of legislation since the 1980s.

SCG: What value proposition does a company like Greenscape Capital offer consumers, that isn’t already being offered in the marketplace today?

EW: “It really comes down to the synergy I mentioned earlier.  Greenscape is going to be able to get ahead of the curve by utilizing this sort of shared knowledge base – and in some senses a shared services base – and to be able to leverage it for success in this new space in the market.”

SCG: This really is a relatively new space of the market to be in. Is there any risk that being a “green” company is simply a fad or a short-term trend and that in 10 years time, nobody will care whether or not company’s are acting in environmentally responsible ways?

EW: “No, is the short answer.  I would think quite the opposite – in 10 years time, if your company isn’t acting environmentally responsible, you’ll simply be cast aside and abandoned.  This is just the tip of the iceberg.  Anyone who thinks that the disastrous environmental situation that we currently find ourselves in is just going to disappear is living in a dream world.  Even if we manage to solve some of the big problems, climate change for example, there will be others.  That much is certain.

For a long time people were in a real state of denial.  We all bought gas guzzling SUVs for years (at least in North America) and the manufacturers followed suit;  they too were in denial about a number of these environmental issues.

We’re getting to the point now where the consumer awareness is driving the types of goods and services that are on the market.  This shift is really starting to take hold.

Today, and this is really what is going to get North America caught up with Europe, there’s money.  As people continue to learn and the market evolves accordingly, there will be a greater financial resource base to draw from in the quest to innovate.  The really smart companies are already well on their way.”