Wey Education Share Discussion Threads

[netcurtains] 07/6/2019 15:52

At long last WEY Education break into FOOTBALL Market.
They have been trying to break into this area for years.

[netcurtains] 07/6/2019 11:33

Good theory about shares...
Buy Friday about 4:10pm
Sell Wednesday about 9:10pm

[ny boy] 05/6/2019 22:19

Fab progress since sub 6p, onwards & upwards!

[smithie6] 05/6/2019 22:12

well, the cap. value is still very low

so growth inside our often damp island (!!) should/could easily push that cap. value much higher

but personally it's the potential for growth in much bigger countries that would really move the turnover, profit & hence the sp

but yes, how to achieve growth overseas without throwing away money trying to achieve it ....difficult

(many clients are UK actors & models,
well, lots more of those in the USA than in the UK)

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well, the organic growth has been very good
& the house broker expects it to continue over next yrs
..if they achieve it the share price will be much higher

[bones] 05/6/2019 18:17

Smithie, thanks for the views and I am not about to disagree that these are possible approaches. However, I believe WEY directors have made it clear that they have a job on their hands concentrating on increasing the schooling activity (Interhigh and Academy21 strands) by a factor of 10 over the medium term (not merely “running a school”) and perhaps they are right to have in place the necessary directorate to oversee and grow into that size.

[netcurtains] 05/6/2019 17:32

Teaching children

[smithie6] 05/6/2019 17:16

bit lost as to why they appointed an exec. Human Resources dir.

only 110 staff...and perhaps 90 of those are all working from home
and basically they commit, or dont, to teach a course, on-line from home

and the students will be providing on-going feedback score sheets for that course and that teacher.....so if a teacher is viewed by students as doing a bad job or being on-line later or whatever then WEY will very quickly see it in the feedback forms

and if teachers are producing OK feedback scores then what work is there for the HR dir. to do ??

and if different teachers need occasional slaps on the wrist or whatever..or selected for further training or whatever....then surely that is not a job/task for a director, but for a HR manager....an exec. dir. should be giving direction not doing minor day to day tasks, imo

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I can understand an HR director at big multinational with 10.000 workers....but for a co. with just 110 workers ??
almost no other AIM co. has an exec. HR director

[smithie6] 05/6/2019 16:22

disagree

OBOR could phps act as an agent or re-seller using its Chinese contacts..if it wanted to..but I think their plan is to acquire the owner of some education products to then sell them in China, and not just get a commission.

imo for most products to succeed in other countries you need someone in that country pushing the products or meeting with possible partners/outlets (which is the type of deal that WEY's previous MD set up in Nigeria, without imo any investment by WEY)

put up a stall & put yr products on the shelves...in a country where your products are not known...& they'll probably just sit there, unsold. even if the products are cheaper & better than the competition

while I agree that past attempts didnt bear much fruit....while they did incur costs (although the new Nigerian teamwork deal looked fairly cost free for WEY since they were using local partners to re-sell/use WEY products in return for a commission), & I can understand the dirs. wanting to end those on going losses

....I have some concerns that phps that the MD & the HR dir. are phps ok to run a school...Im not convinced they are ideal as exec. dirs to grow a co. or have ideal or much skills/experience in marketing & internet marketing...but hopefully the co. has someone with the needed skills or are wise/humble enough to buy in advice when needed.....while noting that the chairman has relevant experience & access to more IT experience if needed, since he is exec. chairman of a small/tiny listed IT company and he apparently played a part in creating the IT products

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the big change in direction for growth since the demise of the previous MD
shows imo that the bod wasnt very much in agreement with the previous MD

I see that the co. has taken on an experienced sales person to especially target the corporate market.....
be interesting to see if that produces results in the coming months

[bones] 05/6/2019 15:06

Once burnt is enough for the current directors. At least in terms of JV’s. Interhigh already sells to international markets and they will no doubt already have Chinese students but they are as customers, not business partners.

As I said before, if WEY were to get into bed with OBOR, it will be because OBOR makes a play at WEY and to do that it would need to have a major fund raise. It would be like a reverse takeover as £4M in the bank will be totally insufficient on its own. OBOR will be an equity diluting machine.

[smithie6] 05/6/2019 14:12

disagree on that last point

a new co. listed in Jan. '19 with Chinese named dirs
LSE:OBOR
raising 4M cash
solely to buy operating education businesses & then obtain sales in China

most of WEY turnover is in the UK, which has a population of ~60-65 million

whereas China has ~1000 million ppl....
~17 times the UK population !!

.& probably/phps a public education system in many parts of China with a lower quality of that provided in the UK...& a culture in China of being willing to invest in the education of their children

so, imo there is a massive opportunity for WEY outside of the UK, while I agree that it is not easy to expand abroad...& the co. must be careful not to waste money or throw money wildly into speculative ventures

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phps WEY could license its teaching products via/to OBOR if those Chinese named dirs at OBOR have good connections in China

in any case the current import/export tariffs fight between USA & China could be positive for WEY, phps USA will force China to remove or water down any unfair trading conditions/limits...or they will be hit with big taxes to sell in the USA

& watering down unfair conditions in China for overseas cos. wld be +ve for WEY imo

[barnetpeter] 05/6/2019 13:51

Still holding here. Never tempted to sell at the 10p level as many on here did not with all that cash in the bank. Expect 20p this year as business booms. The company got too ambitious but now its back to basics under new management. The mkt is big enough locally without having to go to China.

[bones] 05/6/2019 13:37

Smithie, I do not have a lot of data on individual parts of the business but it is my understanding that the London office was a legacy property from Wey Capital days (before WEY was floated on AIM) when Wey Capital (run by David Massie and his previous CEO whom he took to court eventually) was aiming to build a portfolio of Academy Schools.

I think getting rid of legacy/millstone assets is always a good thing for cost saving, time saving, human resource saving. I do not know what the staffing was but I expect it was not that much on site but it still had to be maintained. Losing the rent and rates and maintenance overhead for a central London office building has to be a chunky saving though.

[miahkaysor] 05/6/2019 13:14

Is it still worth a punt??

[qs99] 05/6/2019 13:07

Wow, really motoring

[smithie6] 05/6/2019 12:26

bones

sounds like you have looked at the data

how much do you think the on-going PBT is improved by closing the London teaching ctr ?

noting that surely some staff will have gone as well as saving the rent, lights etc

[hamidahamida] 05/6/2019 12:07

#WEY share price now over 200 day moving average. The last time it did this (when the 20ma was above the 50ma & 125ma) was in Feb 2017 & it went from 3.8p to over 40p: youtu.be/OCK3Bxa4_sw?t=?

[bones] 04/6/2019 16:03

On a point of admin, WEY has got rid of the London office now as the group has changed its registered address to another London address belonging to their auditors, Shipleys LLP. WEY has also satisfied its charge against the old London office and got its rent deposit back. This is all recorded at Companies House so we can be sure WEY can get on with the business in hand wrapping up whatever is left to clear on the overseas JV projects, etc.

[hamidahamida] 04/6/2019 12:48

#WEY share price now over 200 day moving average. The last time it did this (when the 20ma was above the 50ma & 125ma) was in Feb 2017 & it went from 3.8p to over 40p: youtu.be/OCK3Bxa4_sw?t=...

[qs99] 04/6/2019 12:42

Bid or new broker note having affect? Dyor

[netcurtains] 04/6/2019 12:30

the money was raised at about 22p.
I guess that area will be the resistance price.
But long way to go before then

[hamidahamida] 04/6/2019 11:14

Moved above 200 day moving average

[bones] 04/6/2019 10:11

No, the WEY board is doing the right thing. It is not a big company and cannot afford to burn itself in geographical areas it is not familiar with. David Massie had his connections there and even he found it very tough getting anything through China’s red tape machine (check out the 1/10/18 RNS update) and he was using Chinese native speakers in his quest.

No, if Starcrest is so confident, let them make a proper offer to buy out WEY in order to access high quality UK based teaching systems. That seems to be their raison d’etre, non? They say:

“Starcrest Education The Belt & Road Limited ("Starcrest") is an international developer and operator of education services in Europe. The newly formed entity has been established to seek acquisition opportunities in the international education sector“.

Seems a pretty clear strategy which means WEY has the potential to be in their sights as a key UK based operator in their very sector. OBOR won’t get far with £4M though!

[smithie6] 04/6/2019 09:53

Starcrest
lse:OBOR
newly listed on main mkt in Jan. 2019

with no turnover
..raised £4M

looking for acquisitions in Europe to then use in China to serve the large mkt there



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"Strategy and Market


Starcrest's overall strategic objective is to provide innovative solutions that add value to students, employers and the wider society in OBOR countries primarily.


The Company's acquisition targets will initially be schools based in Europe implementing the International Baccalaureate (IB) programme that offer the potential for long-term growth. As China is currently seeing an increase in the number of students that are unsuccessful in their applications to higher education establishments, the Starcrest Board has noted a significant opportunity to provide these students with access to improved education and best in-class services that they require to pursue better-paying jobs in China. This human capital problem has been recently noted in a series of documents published by the Chinese government in February 2019, which outline the country's policy priorities for modernising China's education sector for the coming years".

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Maybe WEY should consider to remove some of its new bod appointees (Human Resources dir. wtf !!!!)
replace with them with some Chinese directors & then get after the Chinese opportunity.

Wey recently pulled back on its past Chinese venture ...interesting to see that Starcrest think there is a big opportunity for providing education in China.

[bones] 04/6/2019 09:39

Share price into double figures now. It’s not often such a gift presents itself as this one did in the 5p area in late April and again in the first hour after the interims at 6p on 13th May....

The potential here is good and I don’t think people have given enough weight to the recent announcement that OfQual now offer the first “Teaching Online” qualification provided by WEY. That is official Government recognition of WEY’s qualities and potentially a new source of income - teaching the teachers. Online is not going away!