Wey Education Share Discussion Threads

[woodcutter] 27/2/2017 14:32

I've been looking at LTG the chap who founded RWS is invloved.

woody

[netcurtains] 27/2/2017 14:08

Why WEY could be a ten bagger?
(well it is possible)..
For example LTG Learning Technologies Group is worth £181 Million
I kid you not. £181 Million..... That is TEN TIMES WEY....
Now WEY is a smaller company but perhaps a year down the line it might be bigger.
1 year on the internet is a long long long time.



( dont necessarily buy today, it might go down short term for a while, but worth keeping on your watch list. I will definitely be accumulating from time to time - Unless news turns sour)

[netcurtains] 25/2/2017 16:27

TW "shorting" : I am quite sanguine about this as I have not bought that many. If WEY goes down due to shorting type activity I'll just buy some more. If it was good value at about 5p then its even better value at 3p-4p etc. If it goes up then smiles all round. Either way, does not really matter, provided I and others keep the investment reasonably small and are willing to hold for a reasonable length of time.

If you take a rational view about UK education, the way forward in improving school standards and cutting costs is to have THE VERY BEST TEACHERS giving on-line courses to thousands of children. But also develop, perhaps, on-line AI: then you could almost have ONE GREAT TEACHER per child...

[tenniselbow] 25/2/2017 12:41

The debtors are share holders who at this stage can't convert to shares as they would
Have to make a takeover for thr company. I think there will be a wrights issue
When there shares will be converted

[tenniselbow] 25/2/2017 12:36

The main cost of schools are rents and labour.they have always been over staffed by the old management and I have been saying for the last 2 years they need a new team
Which they have. It will take 18 months for them to be making 30 % pre tax profits
Most schools of this type went bust over the last 2 years so still being around
Means great potential. I hold just over 1m shares

[woodcutter] 25/2/2017 11:26

TW is a strong adversary, though his behaviour is often questionable he has his followers and no doubt there'll be some stuff flying next week. Sometimes he gets it right and sometimes not. He's exposed many frauds and oddities in company accounts and that's to be commended, although not always in the nicest of manners. I guess he's clearly a capable analyst and he's noted the high creditors on the balance sheet which imv can be easily dealt with.

As i said at the outset it's not without risk and as long as you keep a perspective and only have it as a small part of a portfolio it may deliver many times what you invest, by the same token it may well go the opposite way. I think this year results will give some indication which it's to be. The interims in April are going to be very interesting if they're are good it will fly.

One things for certain i wouldn't be shorting it on the back of TW bearcast, probably too illiquid anyway.

woody

[qs99] 25/2/2017 11:20

someone above posted a link to one of original articles about what WEY could achieve back in 2016, the article was quite interesting IMO and was what WEY came to the market based on....DYOR, but £1m profit was I think one of the figures quoted as the 2nd or 3rd year target as the operational gearing kicks in. AND it doesn't take too many students IMO to achieve that so while not without its risks, it does have potential IMO, but we will have to wait for the next trading update to see how they are faring....GLA and DYOR

[netcurtains] 25/2/2017 10:23

Thanks Woody:
All I get from trying to view Tom's position is this:
"Finally I take apart overvalued ramp Wey Education (WEY). Its shares are up 33% today. That is a ramp not a reflection of value."
I know Tom's view is not accurate as the price was changed due to £100,000 transactions not me or others being optimistic.

I got in AFTER the rise, not before. My opinion is a company (such as this) in the internet arena and growing, once it gets to a £1M NET profit should be worth over double the price it is today. Using Woody's figures (see above) it could be within a short span of time (in investment terms) that you double your money (eg over 12 month period). And potentially, long term, if it all pans out, this could be a multi-bagger - if it makes £1M net profit then there is clear road ahead to make £5M to £10M down the road over a few years. As I say, this is not a day trade, its an investment. However, since it is a "penny share" it can explode up or down at any time - that is the risk you take - so my opinion would be , ignore the wild fluctuations, go in at a price you think you can double your money and simply wait and see if it works out over a year. Not one to put your life savings in, but I'd say good odds of winning if this was a horse race.

Remember WEY Education have the ONLY on-line high school in the UK - so in a horse race, they are already in front of the field. (If you look at Netflix's OA mini-series you will note that normal US Schools use distant learning a great deal, especially for "difficult" children - the market is huge in all directions both gifted and difficult to normal).

[tenniselbow] 25/2/2017 09:26

When a tipster like TW has to ask for money to fight a legal case it sums up his worth

[netcurtains] 25/2/2017 09:16

tennis: Dont be like that. We all have our strengths and weaknesses. I'm sure he has quite a good success rate otherwise he would no longer be in business as a tipster. His opinion if of value just like anyone elses.

For a believer in on-line education, distance learning, home school, posh education for all, I am in; but others are totally entitled to the opinion that "real concrete" schools are better - we can agree to differ amicably..

Its like saying someone prefers Dorthy Perkins/Burton Tailoring to ASOS or Misguided or MySale or BooHoo... They are entitled to shop at Dorthy Perkins if they wish. Its their choice.

[tenniselbow] 25/2/2017 08:55

TW is a good indicator that the shares are a buy he has little understanding
Of companies and markets

[netcurtains] 24/2/2017 22:08

thanks woody - two good posts - better than mine all put together...

[woodcutter] 24/2/2017 21:31

spend some time looking at the growth figures

revenue grew from £516K to £1516K growth of 194%
but admin costs only grew from £458K to £1109K growth of 142%
even accounting for amortised intangibles it was less than revenue growth

this is quality operational gearing here
gross margins improved from 42% to 47%

the greater the revenue this business makes the greater the bottom line is going to be.

i don't doubt it's high risk but i think TW has misunderstood the financial engineering of the business model. His bearcast was a little disjointed and the numbers poorly presented in my opinion. maybe he'd been at the ouzo :-)

aimho woody

[woodcutter] 24/2/2017 21:12

TW is a making noises about the size of the creditors on the balance sheet and consequently the cash flow. what he's failed to recognise is this is a fee paying structure where much of the cash is paid up front before the school year or term semester so cash flow is very positive. Fees paid upfront costs paid later. I don't see any issues with the trade payables at all.

this is an excellent business model.

yes the balance sheet looks stretched at the end of the year because it's a growth company and the fees paid upfront become absorbed by the cost of runnning the business but once the next school term starts and the cash has rolled in for the forthcoming year then things look completely different.. It's a snap shot of the balance sheet at the worst time which is end of school year.

lets say the balance sheet had been prepared at end of september instead of august the cash would have looked very different indeed much of tha payables would have been reduced as a result of the following years income, this is a cash flow situation which can be adequately managed. I have a friend who owns and manages a language summer school for a living and it's a similar operation.

besides which the market cap is £5m and the revenue is forecast this year to be £2.6m so it's hardly demanding in terms of sales to value ratio.

Gervaise williams is no mug indeed a smart small cap investor and if miton are invested then that's fine by me.

[netcurtains] 24/2/2017 19:00

Just to let you know I am a 100% believer in on-line School education.
I think its the way to give the whole nation (eventually) an Eton education on the cheap.

In fact the use of on-education in Singapore and South Korea is all pervasive ...

That is the principle - I know we're a long way off that here, but its a start.

Ground zero if you like.

[netcurtains] 24/2/2017 18:34

geoff80: Thanks good to know. Does he give and reasons why? On paper the whole idea sounds great so it must be something more specific he does not like.

[geoff80] 24/2/2017 18:04

Tom W. advises 'avoid'

[qs99] 24/2/2017 16:04

Yup lots of information thanks! Looks interesting albeit small... big potential

[netcurtains] 24/2/2017 15:58

I like a board with all the info in it - at least they have a lot now!

[woodcutter] 24/2/2017 15:07

net are you on steroids?

i like quiet boards, too much fuss calm down:-))

wc

[netcurtains] 24/2/2017 15:01

Hi Woodcutter: I did the same - wild punt - THEN investigated. Relief, it is actually a good idea in a growing market backed by "City Gents".
Phew!

[woodcutter] 24/2/2017 14:56

well it'll either mutibag or crash and burn but after doing a little research i've taken a punt here this afternoon. not my usual investing style but it's only a small holding

woody