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But it still looks like we have quite a few bored holders happy to sell out a bit higher than we were a few months ago.
Yes, it will be interesting to see if that transaction is allowed to go through.
But regardless, it does highlight that Cross border payments is a hot area with the Chinese now joining in.
All bodes well for ESG.
Land Grab - The Times today
https://www.thetimes.co.uk/edition/business/china-tests-may-in-550m-move-for-uk-business-d0638rts6
Behind a paywall - but snippets -
"A Chinese financial services company that was blocked from buying a US money transfer business last year is acquiring World First, a British payments group, in a deal that tests the government’s stance towards foreign takeovers
Neither company disclosed the price that Ant Financial is paying, but it is thought to be about $700 million (£547 million).
“Alipay and World First’s capabilities and international footprints are highly complementary,” a spokesman from Ant Financial said. “The tie-up will add World First’s international online payments and virtual account products to Alipay’s broad range of technology solutions, enabling us to reach a greater number of customers, especially in the fast-growing area of cross border e-commerce."
today
then onwards and upwards still way to cheap
Just logged in expecting a profit taking day
Pleasantly surprised LOL
Yes, there have been some big buys over the last week or so.
Maybe some read across from EPO of people are expecting this to be in play shortly.
I had never really supported the theory that Mastercard were bound to make an offer for this eventually, however the recent action over at EPO has changed my mind.
now
some big boys want in
nice volume
As Mastercard are spoiling the party for Visa over at EPO, what about Visa putting in a bid for ESG.
Okay, ESG only own 36% of Homesend, but they could force Mastercard to bid here.
And Homesend are set up as an independent company. The last thing Mastercard would want is Visa getting an insiders look at what they were doing.
They'd effectively be saying - you leave EPO alone and we'll let you get on with it at Homesend.
However on a happier note Mastercard Q418 and FY2018 results were out today.
Cross border volumes were up 17% Q418, and up 18% in FY2018.
This well beats Visa with what appears to be up 11% cross border in Q119, which continues the 10% Visa/18% Mastercard growth trend in cross border over 2018 as a whole.
No wonder Visa is after EPO.
Sp getting spanked now.
Probably better to have said nothing, unless it is really material, rather than give out chicken feed
Mmmm....and these new contracts can probably not even get the legacy business to break even, despite the enormous progress made on costs over the last few years.
It appears that we need to get to that point to get rid of the legacy business - they probably can't even split it off as it is supported by Homesend and would probably just fold on its own.
It is all about Homesend.
The takeover battle at EPO does however give me hope that we are onto a winner here.
Market not interested in new contracts it wants the parent company sold off and Mastercard to put an offer in for Homesend putting long term shareholders out of there F in misery.
can it push even higher........
Mastercard has consistently been growing cross border payments at twice the rate of Visa, over the last several years, at around 20% pa vs 10% pa for Visa.
In terms of market capitalization Visa is almost 50% bigger than Mastercard, $300bn vs $200Bn, however Mastercard appears as a company to be growing faster.
https://www.fool.com/investing/2018/05/09/the-acquisition-giving-mastercard-winning-opportun.aspx
Mastercard CEO Ajay Bango in 2018 described Mastercard Send and Homesend combined with Vocalink as the "killer app".
https://www.edisoninvestmentresearch.com/?ACT=18&ID=21152&LANG=
So I'd say it was Visa which is on the back foot here with Earthport, having lost its recommended offer in favour of Mastercard, and presently also losing in a growing market to them.
There is no doubt that there is an international bidding war going on in the banking payments sector at present -
https://www.pymnts.com/news/partnerships-acquisitions/2019/earthport-accepts-mastercard-offer-over-visa/
To me this makes a higher offer for EPO most likely, the only question is will it be incremental or a knock-out bid?
It seems that Visa does not have the luxury of waiting around for whatever else may come on the market, and developing their own system will take time and leave them at a further disadvantage to Mastercard.
It is simply a question of waiting.
Whatever the case the market appears to consistently value ESG lower than it should, just as clearly it has massively undervalued EPO, thus presenting small investors with a significant opportunity.
I don't think visa will hang about - they must have anticipated a counter bid - whether they expected it from major rival Mastercard is another matter.
I await developments with interest, but whichever way it goes it is win win for holders of ESG.
Yes, and Finncap will no doubt add an uncertainty factor to their calculations so the eventual price may be greater than this.
"Await Developments" as they say
Hopefully we are near the end game for Homesend a buy out of 20p would be nice.
Yeah, well done cab, and thanks. An interesting read.
That research note was very bullish on HS.
A great explanation of why HS is undervalued.
Once again, many thanks.
Thanks cab.
I will do that.
That makes sense. They will have ensured the specification meets their exact requirements.
Involved in every stage of the project.
Check out Lorne Daniel at Finncap he has just done a writeup on the comparisons of Homesend and earthport.
You can sign up to the web site for free.
He thinks that the buying of earthport is as a positive move for homesend.
But since Mastercard were involved in the development of Homesend, one would assume that it does what Mastercard needs it to do.
Mastercard are maybe just making it expensive or just difficult for Visa. Again, who knows?
Who knows? Who knows? and Who knows?