Eservglobal Share Discussion Threads

[wigwammer] 15/2/2016 11:42

"when the picture changes so does my thesis for holding"I suspect for many punters that is the most expensive piece of bs ever written. What it usually means is.. "When my perception of the picture changes so does my thesis for holding. "

[yasx] 14/2/2016 21:01

This is a paltry punt for me, but, the risk/reward has never been better on this one - however, I am mindful of impediments to success going forward.

[yasx] 14/2/2016 20:50

Pinkfish,

A few points:

1. You really are rather confused

2. The recent loan facility was entered into on the 5th of October, 2015. You say it is utterly derisory and the cause of you changing your previously bullish view. It is surprising therefore that in October, after the terms of the loan had been agreed, that you were still bullish (per the chronology above).

2. Volantis have previously offered a loan of exactly the same quantum in June of last year, agreed on exactly the same terms. Despite this, you were advancing glowingly bullish outcomes.

3. Given that Volantis had alread provided £5 mln, if they really wanted this to go to the wall and pick up Homesend, then surely there is no need for them to offer another £5mln if the equity is likely to be worthless. Volantis could easily have demanded the initial loan be used to pay the debt owed to the National Australia Bank or they would not enable drawdown of the second tranche of the second debt facility, in which case they would be at the front of the queue to pick up what is left after administration. The second drawdown was subject to approval from Volantis, and they have agreed to it - do they knowingly like to throw good money after bad?

4. Full year revenues were lowered at the last trading update due to a failure to close high margin orders. But, it was made clear that these were delayed, and would be crystallised in the first half of 2016. Thus, one might conclude that revenues will be marked sharply higher and debts will be more readily serviceable going forward, especially with a commitment to reduce the cost base at the same time.

5. The Board has indicated that the loan agreed last October is sufficient to carry them through this year, and that includes paying off the loan from the NAB. Dilution is not on the cards, but one can never rule these things out. However, I refer you to the statement from the Board at the last updated:

"the Company is now better positioned to drive effective cash collection and deliver revenue growth"

Yet, you have now thrown in the towel. The time to do that was when Blundell was selling his shares some 18 months ago for 'personal reasons' (that old rhubarb). Remarkably, at that time, with the Company clearly requiring funds to gain traction (either by way of dilution or taking on debt), and with the shares at twenty times the current price, you were cheering from the rooftops and loading up.

You could not make it up...

[p1nkfish] 14/2/2016 20:19

Funnily enough the paid monthly leader who negotiated this is now full-time.
Did major shareholders agree to this?
Would one of them happen to be a connected party to Volantis by any chance?
It's all a bit cosy imho.
Enjoy.

[p1nkfish] 14/2/2016 20:16

The interest rate is as high as it is and the security demanded potentially so large as it is because of the risk.

It didn't look like that a while back.

If the risk was less do you think they would have had to pay that rate?

Get real - look at global interest rates.

This is a high yield case = high risk.

Volantis can't lose as they can seize the Homesend asset and get paid in the meantime whilst waiting to see if ESG trip up.

[p1nkfish] 14/2/2016 20:13

when the picture changes so does my thesis for holding.
Look at the debt levels back then vs now.
Look at the interest payable back then vs now.
Look at the security on Homesend back then vs now.

The picture is improving compared to 6 months back, but it was better still 2 yrs back, but it's not at all clear the Homesend holding won't end up with the creditor and in the meantime ESG have to pay back the cash by Oct '17 and look at the interest rate in the meantime. Look at the options with the creditor too. Dilution likely.

ANB were concerned, quite rightly.

The degree of mismanagement wasn't clear a while back. It became so 12 months ago.

Management has improved but look at the money they need to find between now and Oct 2017 in terms of capital and interest. Since when has there been such FCF from the core business?

Please point me to it.

[yasx] 14/2/2016 19:00

Any reader that takes seriously the view of Pinkfish in relation to this Company ought to have his/her head examined.The evidence is all too clear. He does not have the remotest idea, and is disenchanted that he bought the concept and sold the lows. These are the hallmarks of a novice investor/punter.

[yasx] 14/2/2016 18:57

Hibbert,

What fraud do you allege? Care to provide any evidence?

[yasx] 14/2/2016 18:56

Pinkfish,

The thesis upon which you are bearish has been around for a while - which leaves me perplexed as to why you bought the highs and held on (by your own admission) for a not inconsiderable time.

Now that Homesend looks like it is coming together, you have suddenly turned remarkably bearish. I am not dismissive of the concerns to which you allude, I merely state that these are factored into the equation at this price and with Homesend shaping up the balance favours the upside now that this plainly is on the 'cusp of something useful'. Your abject timing is clouding your judgement - the chronology below reinforces the view that you were 'promoting' this company for two years and as recently as a few months ago. You now declare the involvement of Henderson a ghastly noose, yet you were only a few months ago espousing their involvement as clear backing which you welcomes for this Company.So when exactly did you sell out a while back? Oh dear...

1.p1nkfish 21 Oct'13 - 03:00 - 236 of 488
Had an eye on these for a while. Might add some. Interesting shareholder base and on the cusp of something useful.

2.p1nkfish 1 Nov'13 - 12:37 - 238 of 488
Bought a few.

3.p1nkfish 10 Apr'14 - 12:51 - 352 of 488
future looks good for these

4.p1nkfish 10 Apr'14 - 13:30 - 353 of 488
The 2x big buys at 50p lead me to believe this will break through its triple top and run on convincingly.
Any thoughts?

5.p1nkfish 2 Jun'14 - 06:17 - 359 of 488
Trading update reads well and with the cash in the bank from jv activity. Move up?

6.p1nkfish 20 Oct'14 - 11:28 - 401 of 488
hxxp://www.newtimes.co.rw/section/article/2014-10-18/182054/
Airtel Africa kicks off Nov 1st.
I would say momentum to build quickly thereafter.
Been 2 yrs in the making and central banks of East Africa ok'ed.
Excellent growth potential. Looks like ESG may have broken downtrend too.
Fingers crossed. May explain webcast on the cards.

7.p1nkfish 20 Oct'14 - 11:33 - 402 of 488
serious intention to go 'live proper' over even wider area next year and there should be a snowball effect. Positive for Africa and a major move forward for all concerned. ESG in the right place at the right time.


8.p1nkfish 29 Dec'14 - 09:47 - 406 of 488
The new money can only help accelerate uptake. 2015//6 should see upside now ebitda positive.


9.p1nkfish 23 Jan'15 - 00:00 - 407 of 488
Tbe MONI fall out might impact ESG even though ESG is a survivor with a better model and plan. Hold tight.

10.p1nkfish 23 Apr'15 - 10:58 - 445 of 488
Glad to see Henderson add and guessed they might - post 440.
Now, they either guide and assist subtley and/or they force change. Either way is good for shareholders med/long term.

11.p1nkfish 21 Jul'15 - 22:11 - 460 of 488
Good news for Homesend-Azimo today.Give it a little more time and the share price will perk up. Agree about buy-out potential.


12.p1nkfish 23 Sep'15 - 10:32 - 467 of 488
It is well positioned but we need to see the opportunity exploited and turning up on the bottom line. Cost cuts have helped, now it's volume/revenue. Not worried about a buy-out.

13.p1nkfish 12 Oct'15 - 14:53 - 472 of 488
35% Homesend independent valuation is intersting and might surprise to the upside.

[hibberts] 14/2/2016 18:53

It is legal for institutional investors to unload there shares to private share holders except when doing so with fraudulent intent.

[yasx] 14/2/2016 18:33

Hibbert,

In the smallcap space, it is rarely the case that interest of those running the outfit are aligned with minority holders. As for the regulator offering some sort of intervention if institutional investors exit by offloading to retail holders, well, not only is this legal but such intervention is not within their remit. So, the idea that the regulator will get involved is farcical.

As an aside, all regulators tend to be utterly useless.

[hibberts] 14/2/2016 18:14

You always like to think that companies board of directors has its share holders interests at heart but sadly thats not always the case.
I shall be watching esg very closely over the coming months and that includes institutions unloading shares onto private investors if i think something underhand
is going on I will take my findings to the FSA and ask them to investigate.

[p1nkfish] 14/2/2016 16:51

i don't hold, sold for tax a while back.

have kept an eye on it and have an idea what is going on.

volantis money was only on those terms because of the execution risk and repest usage of the facility/function has not been as expected.

the current price is where it should be and if they drop the ball the best asset will pass to the creditor.

just paying the interest will be a stretch with current performance.

they might have to dilute or sell % of homesend to repay capital.

[yasx] 14/2/2016 14:17

Pinkfish,

I am not unduly dismissive of the debt issue, however, I respectfully suggest that at the current price this is factored into the valuation. It can deteriorate, but, in the near term, and with expectations of increased revenues going forward, it won't be a noose that tightens around ESG until much later - but, Homesend might well start to deliver by then.

If it does, and given recent news, incipient green shoots are emerging, then it can rally sharply. It might not generate a return for you since you were a buyer at 20 times the current price so I can see why you are disillusioned. Speculative plays are all about timing, ad too many get attracted to concepts and load up. It is better to stand back, allow the technology to unfold and (as is usually the case, dilution and reality sends the shares lower by 90pc plus) at which point it is time to take a position.

At 1.9p, that time is likely now. You arrived too early, and having bought the top you may well be selling the bottom.

But, it is a matter for you. A recovery here is by no means a given, but the odds are favourable.

[p1nkfish] 14/2/2016 11:33

Points to ponder:

Whateve happens, the new management will be taken care of. They work for the creditors as much as for us. Their mindset is unlikely to be what you expect.

If the Henderson company is making the interest (high) has options as part of deal (do) and downside is seizing the Homesend holding (it is) what the hell do Henderson want to hold the stock for when they can use the tax loss elsewhere to offset gains - I think they could be selling down. If it flies they get their capital back, interest in the interim AND their options. Great deal.

Homseend value does ESG holders little good until the massive debt is cleared. Debt is the albatross and this company is now indebted as a slave and need to run to stand still.

[hibberts] 14/2/2016 10:02

This company has been about for 30 years it's a crying shame they've got themselves into this mess,we should get our 6 monthly Homesend valuation next month which may help the share price,Homesend is suppose to be profitable in 2017 so we are getting nearer to the possibility of a great investment.
One thing I have noticed that there is a big seller in the back ground, call me cynical but is somebody trying to keep the share price down? to stop esg from doing a placing?

[p1nkfish] 14/2/2016 00:49

Let's see.
One trip and ESG go under.
That partly explains the price.
I hope they prosper and I think they deserve to but there will be no favours shown.

[yasx] 13/2/2016 22:09

Pinkfish,

Edison (they are woeful,I know), but they project as follows for FY 2017:

[p1nkfish] 13/2/2016 21:34

problems for a while until towards oct 2017:

debt to volantis secured on homesend holding - look at the numbers. high level given esg performance.

interest on that debt - very high.

options given for the debt too.

if they trip up homesend goes to the creditor and in the meantime, if there are earnings, they go to volantis as interest and capital repayment, or, dilution is used or sale of some of the homesend stake.

[yasx] 13/2/2016 19:04

The market is simply astronomic...

-----------------------------------------------------
"HomeSend, as a B2B solution, plays a unique role in offering interconnectivity between, MTOs, Telcos, Banks, Mobile Money Providers and Financial Service Providers. The World Bank estimates that remittance flows to developing countries will reach US$516 billion in 2016.

Executive Chairman, John Conoley, said "Today's announcement is an important step forward for HomeSend. The Payment Institution Licence is a key enabler in building the addressable partner, geographical and consumer base of the HomeSend hub"
------------------------------------------

Clearly they have not hitherto ran this company very well - but, with a reasonable steer, an with news like that earlier this week enabling firmer penetration of the market, suddenly the loss making operation can transform rather quickly with a dramatic improvement to the bottom line, given the lowly valuation ascribed to the company and the potential that exists.

It just needs a safe pair of hands on the deck - and the previous CEO was in it for himself. It remains to be seen how the current chap fares...

[hibberts] 11/2/2016 14:54

Hopefully this will get the ball rolling much faster.

[micbic] 11/2/2016 14:19

eServGlobal Limited ("eServGlobal" or the "Company")
HomeSend approved for Payment Institution Licence

11 February 2016

eServGlobal (AIM:ESG & ASX:ESV), the provider of end-to-end mobile financial services to emerging markets, announces that HomeSend, a Joint Venture between MasterCard, eServGlobal and BICS to create a market-leading global payment hub, has been granted a Payment Institution Licence by the Central Bank of Belgium.

A Payment Institution Licence is a key milestone in HomeSend's development strategy, allowing it to further strengthen and expand its market coverage. The establishement and maintenance of a Payment Licence was identified as a use of funds of the HomeSend capital raise announced in September 2015. The Licence enables HomeSend to operate in certain regions, including key new markets in the Asian subcontinent and Far East, and to secure new types of partners.

HomeSend is a disruptive, multilateral global payments hub, which allows all players in the substantial global payments space to interoperate via a single connection. HomeSend, as a B2B solution, plays a unique role in offering interconnectivity between, MTOs, Telcos, Banks, Mobile Money Providers and Financial Service Providers. The World Bank estimates that remittance flows to developing countries will reach US$516 billion in 2016.

Executive Chairman, John Conoley, said "Today's announcement is an important step forward for HomeSend. The Payment Institution Licence is a key enabler in building the addressable partner, geographical and consumer base of the HomeSend hub.

"This builds on the recent structural progress of going live with the new PCI-DSS compliant data centre, which will enable integration with the MasterCard network. eServGlobal remains confident in the progress and long-term success of the HomeSend Joint Venture."

[hibberts] 01/2/2016 12:51

Rats sinking ship?

[p1nkfish] 29/1/2016 08:16

look how much interest they will be paying until autumn 2017. Todays summary is very well written, candid.
I like the no BS approach in the report. A good sign.