Don’t cry for me Argentina
Mobile Streams founder Simon Buckingham did little to uphold faith in the content retailer yesterday (2nd October 2013) after it was revealed that he sold 630,000 shares as the stock plunged nearly 11 per cent on London’s AIM market. Mobile Streams’ stock price was in turmoil as CEO Buckingham offloaded his shares, with its price having initially shot up on news of a doubling of profits. But then it went rapidly into reverse as it was realised that, despite the sales success mainly in Latin America, much of the company’s revenues were trapped in Argentina following currency controls in 2012 that have hindered the repatriation of funds.
The share price closed at around 67 pence, but not before Buckingham had netted some £441,630 from selling stock at an average price of 70 pence.
It’s reckoned that nearly three quarters of Mobile Stream’s cash remains ring-fenced in Argentina, though that’s an improvement on last year when around 94 per cent was trapped in the country.
Insisted Buckingham, “We’re continuing to build our business in Mexico, Colombia and Brazil, where we launched last week. The reality is that as a portion of our overall cash [Argentina] is decreasing.”
In July this year  Buckingham also disposed of a quarter million shares as its price crashed and when, as this time, he cited “personal reasons” for the disposal.
He is still said to own 16,382,500 shares, representing some 44 per cent of the company’s value.
This morning, in early trading, Mobile Stream’s share price recovered slightly from yesterday’s battering, rising more than 6 per cent to around 71 pence.