Wey Education Share Discussion Threads

[netcurtains] 15/4/2019 16:05

A significant percentage of WEYs pupils come from a sports background. This area could be set for some growth if WEY plays the Jackson card right.
Colin probably knows a good percentage of the Olympic team and others interested in being professional sports personalities.
this seems a good move.
I think WEY already has Theatre and TV covered and now sport.

[bones] 15/4/2019 14:21

So, they have hurdles ahead of them but expect to clear them quickly. No wonder they recruited Colin Jackson!

[netcurtains] 15/4/2019 12:49

astonedt: Thanks for that update. Steady as she goes!

[bones] 15/4/2019 09:21

Net, as I just posted there (TRD), at least TRD has the benefit of rising dividends, no debt and an ex-cash PER of about 3. Crucially it is not having to kitchen sink some old expansion missteps. Like WEY, however, there is the perceived share overhang which may or not be a red herring in the valuation department, plus we need to hear how trading has gone in the last six months (TRD and WEY).

I agree that both companies are looking stupidly undervalued if you exclude their cash. I also agree that WEY are highly unlikely to be spending much of their cash pile on the clearing up process but the market needs to have the situation laid out in a new update before any progress can be made in share price. I feel February’s update was too vague in terms of the costs of closing down the Massie projects.

I am talking like a shareholder here but I do not hold WEY currently but I do have an itchy trigger finger! I cannot really see it dropping much further but I have to be disciplined and I am well invested elsewhere with no plans to sell those currently.

[netcurtains] 15/4/2019 08:56

Its insanely cheap in my opinion - just like TRIAD. Almost identical story right down to big shareholder.

[mjcrockett] 15/4/2019 08:41

BP, I would be very surprised if WEY is going to be short of cash. The 4th February Trading Statement states that the Group is "extremely well funded" with £4 million in cash. The statement does say that because of the restructuring costs the loss for 2019 will be "somewhat greater" than the 2018 loss (of £230,000) but there is no indication that it might run to millions.

[barnetpeter] 14/4/2019 21:22

Bones....yes indeed. We just dont know. It might be that all the cash has gone on these mad deals. Directors get carried away like the rest of us. Wey could easily issue a note to say urgent funding is needed....just like 7dig. I hope it does not but a rescue rights is not impossible. We hope not and dont want it but there seem to be shocks daily atm.

I wont add until the financial position is clear. This is cheap....IF the cash is all there.

[bones] 14/4/2019 21:08

BP, whilst I could never see the attraction of 7DIG even at 7p (and I did look at it when someone mentioned it at the time), and there have been red flags aplenty all the way down from there to the current zero price, I can see your point with WEY. Namely, shareholders are slightly in the dark about the likely true costs of extracting itself from all the various deals and ventures that Mr Massie set up around the globe (China/Nigeria/other "schools").

No RNS has really made plain the likely costs of cleaning out these "non-core" areas now that the group has committed to just the "core" activities of Interhigh/Academy21.

That said, the house broker released a note which concluded that WEY could have a discounted cash flow valuation of 35p. I am speculating that the broker was briefed by the company about the estimated costs involved in the retreat to core trading.

WEY needs to lay it all out in the next update so that the market can get a handle on price. Less than 6p seems cheap as it stands but I guess it is there due to the current uncertainty in costs, the Massie share overhang of 18% of equity, as well as small cap malaise in the markets generally.

I do not hold currently.

[netcurtains] 14/4/2019 20:45

pete: the market is ALWAYS wrong otherwise what it the point?

[barnetpeter] 14/4/2019 19:49

The collapse in share price is saying this is very dangerous.....the cash might be there but who knows? 7 dig was supposed to have double this amount until last Monday when it admitted it was all gone.

Not trying to put anyone off here.....holding myself at a loss.....but the mkt is rarely wrong

[garth] 14/4/2019 17:44

Well, Wey and Academy21 directors were, to begin with all one entity. They parted ways, WEY floated and then public money was used to buy back Academy 21. Following the sad death of Mr Massey we now have an Academy 21 director at the helm. Is it all a bit too close? Or have I got some lines crossed? Happy to be corrected if I have - it is over a year ago that I was having a dig.

For transparency I have taken a small stake again - I see value at these levels. They are forecasting a profit from year to 2020 and they don't need too much lift to get there. As you say Netty - they have plenty of cash and if this became a consistently growing business you might look forward to future dividends which would represent generous yield on a long term investment made at these levels. I just remain a bit concerned that it might all be being done for the benefit of founders/directors first and other shareholders second.

Just a view. IMO only.

G.

[superadams] 14/4/2019 12:50

Based on eps of how much Net ?

[netcurtains] 13/4/2019 19:09

As far as I understand it.
WEY has about £4M in the bank.
WEY has a Market Cap of about £6M.

WEY is growing fast in a very interesting market segment (Online education).

Gut feeling is, within 12 months, its quite realistic to see the share price double from here to about 13p.

(on known facts, of course there are a lot of unknowns - as there is with all shares)

[netcurtains] 12/4/2019 19:16

thanks for that garth we do need some good news even if its a management buy out. So I guess it would depend on what the Massie Heirs would be willing to sell their stake for.. Would the millions in the bank be given as a once off big dividend before any sale (aka Amstrad). How do you see it playing out if they went down that route?
What would it sell for? 11p to 22p share (no idea total guess).

Cheers Net

[garth] 12/4/2019 14:32

"The market for online education is clear to the Directors and it is evident that we can be ambitious in growing the business in the two areas in which we have established business, relationships and which are, before the addition of the public company overhead, profitable."

Just making a point, or 'making a point'?

G.

[bones] 03/4/2019 16:06

All fair points Net. I certainly have learned plenty about TRD using the internet!

[netcurtains] 03/4/2019 15:59

bones: yes, i know what you mean. I did talk to Mr Massie and he did say his heirs are interested and enthusiasts for WEY (or words to that effect). I cant chose my entry points that well but I do know both companies are good investments (on the known facts). We dont know the unknowns of course - but that is true for all shares. All I can definitely say for certain is that I personally learn things much faster and better using the internet - ideally videos with REPEAT and PAUSE BUTTONs (something school teachers do not have )

[bones] 03/4/2019 15:26

Netcurtains, WEY is starting to resemble your other fave, TRD. Market cap in single millions with around half in cash on the balance sheet, with both companies having a potentially awkward overhang of a near quarter of the issued shares (TRD Mira; WEY Massie executors).

It’s a dilemma that prevents many from investing at such apparently low levels, it seems.

Disclosure: I own TRD but not WEY, but tempted at these levels!

[netcurtains] 03/4/2019 14:28

From the Telegraph article above:

It comes amid growing concern over the rise of the home-school movement, with the number of children “off-rolling” thought to be increasing by 25 percent each year.

Yes 25% rise a year.....

[netcurtains] 02/4/2019 15:25

Worth noting in the press yesterday lots of news on the home school 'law' requiring home school registers to be taken so that local councils can make sure home schoolers are getting a good education. This law helps InterHigh as the register is a key selling point of Interhigh

bbc

guardian

Telegraph:

[netcurtains] 27/3/2019 08:14

Yes looks like the market makers have been slowly lowing the price to temp in buyers. Its going to be a long haul back to the high 30s - although with these internet companies with so many bright people (hundreds of graduate teachers) one idea could blow this right back up!

[superadams] 26/3/2019 17:13

Would make sense to start buying in shares for cancellation. What else are they going to do with £4 m cash ?