Update from Under the Radar (you can get it on free trial):...

Update from Under the Radar (you can get it on free trial):

ESERVGLOBAL (ESV)
The eServ share price has continued to slide as investors abandon the stock for fear of a capital raising and in the absence of an explanation for the departure of chief executive Paulo Montessori. The chairman Duncan Lewis not being at the AGM to deliver the chairman’s address (the explanation being “personal matters”) was not helpful, either.

We understand through sources close to the company that there is little danger of a capital raising because when the HomeSend transaction was done, MasterCard paid eServ €8m (A$11.3m) but delivered €4.5m in cash and held €3.5m back in the event of a capital call on the joint venture. In the event, there is €6.5m of cash in the HomeSend joint venture - which is 10% BICS (Belgacom International Carrier Services), 35% eServGlobal and 55% MasterCard.

The company is proving reticent to speak about the HomeSend joint venture which we hear from sources is growing quickly. One reason, which is understandable to a certain extent, could be a possible deal that the company is trying to do with the international remittance gorilla Western Union.

It seems to us that there is much going on beneath the surface in this company. We are hearing different reports from its publicly available comments.