Wey Education Share Discussion Threads

[texas_caddy] 05/2/2019 14:39

Sean - I agree it leaves a bitter taste. Although one could have viewed them as optimistic the forecasts (was it WH Ireland, house broker?) were clearly misleading and shouldn't have been up as long as they were, as wide of the mark as they were.

The mid day RNS was very poor as well.

Lost faith in the mgt.

This may well come good, good luck to all holders.

[seanworld] 05/2/2019 14:15

Sold out. Surprised that this has risen today but has helped
me sell in chunks. Took a big hit here. Sent and received some communication from Wey but not pleased with what has happened here.

The forecasts and my most recent communication with Wey kept me invested
but in my opinion both were extremely misleading.

Good luck to all that remain. I will always keep Wey on my radar but feel it will be sometime before I am tempted to reinvest.

[zulu_principle] 05/2/2019 08:57

Thankfully I only have a small holding averaging around 22p and can afford to hold for a long time in the hope of recovery.

The good news is that planned ventures in Nigeria and China are off the table (in a previous life I had a lot of experience of both markets, esp Nigeria, and had very low expectations of ever seeing profitable businesses being developed).

Focusing on the existing (proven) core and developing B2B is a welcome change in strategy. I'll be averaging down at some point but only when the full extent of this year's losses are revealed and there's clear evidence of profitability going forward.

No point trying to predict when the share price has "hit the bottom". I'll rebuild on proof of futre strength and am happy to miss the first few pence of any rise if it means I'm committing additional funds to a sound recovery-play.

[netcurtains] 05/2/2019 08:29

Interesting discussion on why Home Education is growing at rate 15% per annum

[buywell3] 04/2/2019 19:07

buywell3 - 14 May 2018 - 15:27:17 - 1029 of 1703 WEY Education - The Future - WEY

12p chartwise looks likely IMO








buywell3 - 08 May 2018 - 13:02:14 - 972 of 1703 WEY Education - The Future - WEY

Dealing with or in China is not a given

In fact IMO it is very high risk

[netcurtains] 04/2/2019 16:13

24% Growth. I guess the 6 million dollar question is whether the group can achieve that again next year. the market before this announcement had already factored in most of the negative news (I guess) ...

Is this the LINE under which we can say "recover starts here?" I dont know for sure , but it must be reasonably close.

Cheers Net.

[microscope] 04/2/2019 15:14

Good stuff guys. It's absolutely not a criticism, but I think David Massie's passion for the business led him to develop it 'in his own image'. His connections with Nigeria and China clearly behind the plans there, which have of course now been shelved.

One of the issues imho was WH Ireland's over-enthusiastic eps projections, which have now proved to be just that. It raised expectations and the shareprice to untenable levels. I thought when it came back to 10-12p it might have a supportable market cap, but for now and with only medium-long term jam tomorrow, this is probably more realistic.

When a company says substantially below expectations, I felt for my own needs it was sensible to take a back seat for now, while it sounds like withdrawing from the JVs abroad, and London closure, are going to be very costly.

The focus on the two main businesses should bring continued growth and, properly marketed, make a lovely niche business. It's hardly going to transform the education system, but supplement and support it in a positive way.

[daz] 04/2/2019 14:48

Yes £8m - thanks Bones.

I have spoken to the chairman and while he couldn't be specific, he did say that most of the costs of the overseas operations had already been made and they wouldn't have considered doing the acquisition if cash was a concern. He also said that the business being acquired was simple and should be easy to integrate by running it on their platform.

I asked why it had taken so long for the change of strategy to be announced and he replied that the overseas joint ventures were complex and some of the details had just come to light recently. This raised the question as to why they had embarked on expansion, when they could have concentrated on the core business but as people have already said, the decision to pull back is undoubtedly the right one.

Based on the above, I will hold for now.

[bones] 04/2/2019 14:13

Daz, MCap is about £8M now on a share price of 6.1p. (On 130m issued shares)

[mcfly79] 04/2/2019 14:08

The refocusing of the business makes sense but the forecast is very disappointing.Weighing up my options too. Think I'll hold my shareholding and track progress closely over the rest of the year. Might add at some point if the figures become clearer.Market cap now £8m.

[daz] 04/2/2019 13:47

I'm weighing up what to do as well.
I'd like to know how much cash they will have left after the exceptional items, marketing expenses and acquisition. If say, they are left with £2m, then on a market cap of just over £10m, they will have businesses generating revenue of over £5m, which are cash generative and profitable pre central overheads and are also growing, so on that assumption the valuation looks good to me.
I assume they must be comfortable on cash to even consider an acquisition and I would hope that the synergies must be compelling but there's no information to go on.
It will take some time for the shares to recover from this, so it might be dead money.

[microscope] 04/2/2019 12:59

Sensible business decisions for the medium term and beyond, but in the short term, much suffering in store. A savage statement.

Wish you every success, genuinely mean that, but for now, albeit at a nasty loss, I'm out

[seanworld] 04/2/2019 12:50

At first glance I am extremely disappointed with the update with regards to the forecasts. It now looks as though the forecasts put out sometime ago were estimating a large increase from China/oversees.


"Expectations are that the Group's loss before tax for the year will be somewhat greater than in 2018 due to the factors described above"

[bones] 04/2/2019 12:49

As expected, reverting to core strengths. They could really do little else.



Using 2019 to kitchen sink the over ambitious world expansion so it is going to be hard to gauge value for a good few months yet.

I may cut out much of the header on this thread and replace with the basics of the company and reproduce this new strategic direction and reason for cost overruns.

This has the potential to make headway if JD and her team can show that the core activities are firing on all cylinders. I am not in a hurry yet though to reinvest.

[daz] 04/2/2019 12:48

Warning just out, revenue for this year in excess of 5m, rather than the 7.5m forecast - a big reduction but expectations for a profit in the year to 2020 and cash generative from ongoing activities.

[verulamium] 04/2/2019 12:47

Trading statement out. Very sensible decisions taken on reining in international expansion and concentrating on the core business. Progress will be much slower than it would have been under David Massie's guidance, but there's still a good solid business well placed to capitalise both on the shortage of school places and the need for flexible education provision for some pupils.

[netcurtains] 02/2/2019 13:45

This turns speech into text - its pretty good..

[netcurtains] 02/2/2019 09:58

I do believe that Mr Massie's main concern was the future success of WEY Education.
If I'm pushing the boat out somewhat I am to some extent pushing it out for him as well as myself.

Internet Education is the way forward for up to about 20% of pupils (eg millions in UK alone). I say 20% because I believe 20% of young people probably have the ability to thrive studying and learning mainly using resources like InterHigh.

I certainly find car maintenance miles easier using youtube videos then reading from a book, the internet is a massively powerful tool for education and currently its just in its infancy.

Voice Recognition and AI is going to send it even higher. Its coming on IT jobs market, big publishers are tooling up for AI as are all the mobile companies. And so is InterHigh.

[mcfly79] 01/2/2019 15:27

Very sad to read in the annual report that David Massie recently passed away. Thoughts are with his family.I will hopefully be attending the AGM.

[seanworld] 30/1/2019 08:56

2 lots below 8p this a.m.

Could not resist. I was adamant I was going to wait for the next statement
before committing any further here.

Looks like some where expecting a different update this morning
or at least some indication on trading along with this mornings update.

[netcurtains] 29/1/2019 09:06

WEY Educations current Chairman's company has issued a trading update that has lead to a 25% rise.
Perhaps a trading update for WEY will be next?