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eServGlobal hit by trading Blundell

The share price of eServGlobal slipped into reverse after its chief financial officer offloaded his entire stake in the company.
October 9, 2014

eServGlobal (ESG) was forced to issue a market update to counter a dip in its share price sparked by chief financial officer Stephen Blundell, who offloaded his entire stake. The Aim-listed company, which provides a range of financial services via mobile telephones, sought to reassure shareholders after Mr Blundell sold a total of 618,055 shares for around £188,000 in aggregate.

IC TIP: Buy at 27.75p

The move was hardly likely to inspire confidence, but the reaction was extreme: at one stage the share price had fallen by as much as a fifth. Despite confirmation that eServGlobal "continues to trade in line with the board's expectations," the shares have yet to recover the lost ground. At least investors can take some encouragement from a deal signed in the third quarter between the MasterCard-controlled HomeSend joint venture, in which eServGlobal retains a 35 per cent interest, and Indosat. The agreement will allow HomeSend to provide its remittance services to Indosat's 60m subscribers in Indonesia.

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