Envictus (SGX: BQD) shares are up 7% in Singapore today. It should be said that trade in BQD is a bit “lumpy”, that is we tend not to see a smooth movement over time, but a bounce around between price points. But it's also true that the general trend of the price recently has been upwards.
Envictus share price from SGX
As to what Envictus does: “Envictus International Holdings Limited (“Envictus” or “the Group”), is an established Food and Beverage (“F&B”) Group. The Group has an established portfolio of businesses and brands operating under its key business divisions. Founded in 1997, the Group started as a manufacturer and distributor of sweetened condensed milk and evaporated milk, and in the years following its listing, has evolved into a diversified F&B player following several acquisitions.” There's little to nothing sexy about this, it's a plain old boring business that makes stuff people want to buy. There's no AI here, no vast addressable market, just those everyday purchases of, well, of condensed milk and then other food and beverage products.
We'd not, therefore, expect any grand changes in prospects at any time. If there's going to be a change in the business then it's going to come from that hard grind of just doing things a little bit better month by month and quarter by quarter. The actual evaporated milk sector does seem to be expanding. This would be a surprise to Westerners but the relationship with milk products out in the Far East is different - it's also a place that is rapidly getting richer, allowing the trading up to such products.
It's also true that insiders have been topping up their holdings. “Envictus International Holdings Limited (SGX:BQD) shareholders (or potential shareholders) will be happy to see that the Non-Executive Vice-Chairman, Seng Hui Goi, recently bought a whopping S$4.1m worth of stock, at a price of S$0.16. That purchase boosted their holding by 70%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.”
Losses are occurring at Envictus but perhaps there's confidence that this will reverse.
We can't see that Envictus is a vastly exciting business - as we say it's one where the share price is going to be driven by business results, not fashions about the sector. But then slow and steady can be worthwhile as an investment even if it's not very exciting as a trading opportunity. It all depends on what we're trying to achieve with our own strategy.
