Eservglobal Share Discussion Threads

[hibberts] 19/6/2016 09:36

Homesend could be used for this.

[wigwammer] 08/6/2016 10:39

"you don't know how many of these I have"Never claimed otherwise.But you are definitely the poster who was encouraging people to think negatively at the lows this year (just before it doubled).Hope that helps.

[wigwammer] 08/6/2016 10:28

Hibberts -I agree homesend is the key element to the story, and prior to the cash raise is the only element I valued.But it is quite possible that with limited incremental investment the sunk capital in the core can also be bought back to life. It wasn't long ago the core itself was a growing, high gm% unit in its own right.So yes - the negative is our individual ownership of hs has been diluted, but at the same time perhaps we can look to give the core business a value somewhere above zero going forward. Incidentally, I recently read that Transferwise now has an implied valuation above $1bn, a business roughly comparable to hs. That's well over 5 times the implied valuation of hs here, arguably a far higher quality business.

[p1nkfish] 08/6/2016 10:23

wigwammer - let me re-word it - you don't know how many of these I have.
You don't have a clue chap.
Good luck.

[p1nkfish] 08/6/2016 10:21

Ultimately they are unlikely to be together in my opinion.

There might be another funding round to pay the debt back but I think more likely sale of Homesend stake or split and float off the core with cash raised to payback outstanding liability.

Interesting there is now no penalty to early payback so might be action before end of the loan term. Was previously a penalty. Now lender has such a high % they might influence the payback timescale. They are currently getting 1% per month. Well stitched up as they now also own 10% of Homesend via close to 30% of ESG that themselves own 1/3rd of Homesend. Neat.

[wigwammer] 08/6/2016 10:15

"wigwammer, you have no idea who I am.."Incorrect.You are definitely the poster who encouraged people to think negatively at the 2p lows earlier this year. The shares have consequently more than doubled.

[hibberts] 08/6/2016 08:45

The fund raising will give the company time for homesend to increase in value,which
should help the share price.

I would like to see them cut more costs out of the core business or get rid of it altogether and concentrate totally on Homesend.

[p1nkfish] 08/6/2016 08:39

wigwammer, you have no idea who I am or how much I have made from ESG.
Go enjoy the weather.

Ask yourself what next and by when and what % of Homesend is now in the hands of a particular party and see some cleverness in action. Along for the ride is OK with eyes open but don't fool yourself.

[wigwammer] 08/6/2016 00:29

"Without the substantial dilution they are no longer a going concern."The dilution is priced at around double the level you last posted your concerns.With this in mind, have you thought of paying someone else to manage your money for you?

[p1nkfish] 07/6/2016 22:54

Without the substantial dilution they are no longer a going concern.

Alphagen Volantis (henderson) have this by the gooseberries. 28% after funding plus £7m at 1% per month.

To pay off there may have to be further corporate action or sale of Homesend stake within 2-3 years?

May be worth considering once dust has settled.

Alphagen have done a good job here.

[hibberts] 29/5/2016 09:35

This could be a good tie up with Homesend.




They did say they were moving HomeSend beyond its original role as a facilitator of remittance to emerging markets.

[hibberts] 26/5/2016 09:43

Nice little award.

[bolador] 18/5/2016 13:10

wigwammer

Very helpful indeed, many thanks.It is the size of the numbers that is so interesting and so difficult to value for now but I enjoyed your analysis.

[wigwammer] 18/5/2016 12:22

Thanks bolador. I suspect 7p is conservative in the extreme.1.5% of $6bn (1% of remittance market) = $90m turnover for hs.35% of $90m = $31m or circa £20m.MasterCard earn circa 40% net margins on whole business, so if this product is typical (perhaps a big if), it would imply £8m net profit per percent of market taken for esg.Put this on 20x = £160m (circa 50p per share) per percent of the market hs takes.I suspect given the apparent quality of the product, verified by the backing of MasterCard, that they can significantly exceed 1% of the market. The 7p is a red herring imo - the more telling valuation anchor is where the market has valued esg historically (multiples higher). The numbers involved are very large and I don't think it will take much further news flow to get the market excited again.

[bolador] 18/5/2016 11:52

wigwammer,

Yes, and in todays update from ESG there is an implied upwards revision of the carry value of Homesend in September. There was an estimate of the Homesend value to ESG from a broker late last year of 7p ps. Much has changed this year and with ESG mkt cap at GBP13.29 m(5p ps)in total there is a lot of upside it seems. Its just so hard to escape from guesswork at this stage but it is coming good fast. I would guess that a year will see the share price double with Homesend 10 or 12p ps. If the core business becomes cash flow positive then even better for the share price as debt worries fade.
For now this is a sleeper, but not for long I think.

[wigwammer] 18/5/2016 09:47

Strange and reassuring how little interest there is here:"HomeSend continues to make strong progress. The advent of several strategic milestones will be instrumental in moving HomeSend beyond its original role as a facilitator of remittance to emerging markets, to now lead the shift to digital in global international payments of any kind. Our confidence in this position is affirmed through delivered capabilities such as MasterCard Send, end-point bank account termination and digital wallet payouts. We are looking forward to seeing progress over the next few months."

[hibberts] 18/5/2016 07:32

Looking good.

Mastercard send now live.



This could be interesting.

eServGlobal's CTO, James Hume, has recently joined the Board of HomeSend. James has been involved in HomeSend from its earliest inception. His in-depth technical and market knowledge will be immensely valuable to the Board, and James is already working on additional projects shared between HomeSend and eServGlobal.

[bolador] 10/5/2016 16:58

Well, got some stock at 4.98. Am suprised at the lack of interest.

[cgp_win] 06/5/2016 05:53

HomeSend's partners are getting funding which will result in more remittance flows for HomeSend/eServ.

First World Remit last year:
hxxp://techcrunch.com/2016/02/09/worldremit-45m/

and now Azimo (HomeSend/eServ did a deal with Azimo in Jul-15):
Remittance startup Azimo raises $15M from Viber owner, e-commerce giant Rakuten.
hxxp://techcrunch.com/2016/05/05/azimo-rakuten/

Surely we should have some HomeSend news soon.... News from MasterCard Pass, MoneyGram, eMTO negotiation, recent HomeSend capital injection update due soon.

[colin12345678] 04/5/2016 14:37

RNS New contract

[bolador] 03/5/2016 11:01

Thank-you. Just waiting right now to see the stock offered at 5 p, if so will be tempted to buy more.

[hibberts] 03/5/2016 09:49

HomeSend takes 1.5% commission of each transaction.
eServGlobal will receive 35% of HomeSend profits.

[bolador] 03/5/2016 08:58

Morning Hibberts,

Could you explain the connection between mpesa and esg in terms of revenue share. Thanks.