Formerly known as Envoy Communications Group, Canadian based Envoy Capital Group (ECGI) is a merchant banking company that provides financial services, equity and debt capital to small companies. They give loans and equity investments from $500,000 to $3,000,000 to small and mid-sized companies. Last year they dumped UK subsidiary, ECG Holdings (UK) Limited and launched Envoy Capital Group. They have been doing some restructuring and have been buying back shares like crazy. In 2006 there were 20.3 million shares outstanding. As of now there are $9.9 million after buying back 374,000 last quarter.

After the depression, famous value investor Benjamin Graham had success holding a diversified portfolio of stocks selling for less than a rough quick liquidation value or net current assets less total liabilities and preferred stock.

They have a subsidiary, Watt International that is a leading brand strategy and design consultancies company. They have been building new relationships with a mall design project in Chile and Dubai. They have had such clients as Wal-Mart Stores and McDonalds Canada. They plan on opening a long-term location in Dubai and a new location in Shanghai, China to continue the recent success of Watt International.

They have some interesting investments in a mining company called Mosquito Consolidated Gold Mine (MSQ.V). Its shares have been a multi-bagger over just the past few years. Mosquito is a $56.4 million dollar company with projects in North America, Canada and Australia. Mosquito has grown shareholder equity from $2.5 million in 2005 to $9.4 million as of their last quarter this year.

For the third quarter Envoy grew revenue 86% to $4.3 million and stormed out of the red with diluted earnings of $.19 versus a loss of -$.13 last year. The future looks bright for this discounted company.