Wey Education Share Discussion Threads

[bigboyblue] 09/5/2018 11:58

MS: possibly right about Miton selling more. I also hold DIS and Miton continued selling there after the redemption date.

[netcurtains] 09/5/2018 10:00

MS: The juniors: (as Jackie explained it to us at the meeting) was 200 notes of interest within a week of advertising it.

Juniors, she explained, are more interested in HOME SCHOOL (eg mum is there and they dont really want the whole school experience, they just want the odd lesson or so).
So, she explained, its a break-in for WEY into Home School AND junior markets. Home School could be pretty big!

This type of home school package will be cheaper then buying into the school but it breaks into a new market and gives a cheaper option for some pupils who fall out of WEY due to costs.

They are putting the price up of InterHigh by about 10%.

B2B in China is where Mr Massie was really excited about but to my mind that is for when we become that £100M+ company.

Lets get back to £40M+ via UK over next year or so of good growth.

[microscope] 09/5/2018 09:47

Thanks for the feedback Net, good work. Did anyone ask about the receivables?

Think Paul Scott pretty much echoed my post of yesterday, the valuation did get ahead of itself, though now I think it's looking cheap.

The problems very short term are twofold with the institutions.
They will have risk management - those that bought in at 22p won't want to hold if it goes say 15%-20% below that level, pretty much where we are now infact, and they almost become forced sellers.

And Miton (to my surprise) sold more TLY after the redemption date, I wonder if they have been the ones selling here too, since yesterday morning. An RNS does seem likely from somewhere in the coming days, given yesterday's blocks of 100k and 108.5k trades.

However these are the very short term issues.

The comments you made about Junior Interhigh are very positive Net, and it is another opportunity for the 'disruptive' element of the business to be exploited. And with numbers weighted to the second half as you also rightly explained, the valuation is starting to look attractive if they can turn round the recent slowing in core business activity.

All is not lost! :)

[netcurtains] 09/5/2018 08:54

Its ok - with the drinks afterwards the CEO like me believes that one day we could be talking a company worth in the hundreds of million - and perhaps it might just be a few years down the line.

I like the fact he too is a believer - he does not just talk the talk he has the shares in the company to prove it - and is globe trotting everywhere leaving no stone unturned.

This is also true for Jackie who likewise talks the talk and has the shares.

Glad to see some buying coming back in amongst the sells.

Hope to see this go blue today once the sellers have shot their collective bolts.

[666james] 09/5/2018 08:44

Thanks net for the update.

[mcfly79] 09/5/2018 08:02

Thanks net

[netcurtains] 09/5/2018 07:53

Hi fly. Not really, just that David has spent 15 years in Africa and china and is very excited by both prospects. I being uk based was very excited by juniors and underlying that breaking into the home school market (currently not a market they have really got involved with before)

[mcfly79] 09/5/2018 06:59

Thanks for your comments on the investor evening net.Was anything said about the 2019 forecast?

[qs99] 09/5/2018 06:53

Paul Scott's write up is spot on if you read these things....valuation IMO (and had said it) had got ahead of itself and numbers yesterday were IMO poorly presented to cover up slower growth than expected. Needs to start showing the upside potential otherwise IMO this is drifting lower so DYOR and tis back on my watching brief as it has the potential still.....gla

[netcurtains] 09/5/2018 06:23

barnetpeter: no you are quite wrong, results are OK and going forward lots of new things to add to the numbers (eg Juniors etc). I think most people there felt explanations were good (eg the money for the advert at Waterloo). You missed out by not coming pete. It should be all right today.

Remember this is the ONLY online education company you can buy in the UK. If you want to get into this sector then this is the WEY. And no doubt we should see some wild Chinese investors soon - and you know what they can be like.

The institutional investors are backing Mr Massies team to the hilt.

Anyway lets see what the day brings. I suspect some blue.

[barnetpeter] 08/5/2018 22:43

These could easily halve again. The results are not supportive of a 20 million mkt cap I am afraid.

[netcurtains] 08/5/2018 22:39

OK at the meeting.

Mr Massie did acknowledge he could have handled things better (re marketing costs).

However the Junior InterHigh will be a winner, they have already had hundreds of signs of interest in just one week.

On balance questions answered and lessons learnt.

Going forward lots of good things. Should slowly recover over next few weeks/months

Cheers Net

[microscope] 08/5/2018 20:26

Having traded AIM for many years, like yourself TBF, I would normally see China as a red flag too, as a given, a default position infact, but they do take their education fanatically, and as such I give that a -cautious - welcome at this stage, while will watch developments closely.

Nigeria, yes, can't really disagree with you. Big market and demand for English, but not a country I would ever choose to do business in...

....Reminds me, now where did I put that letter telling me my Aunt Matilda, who I never knew I had, has tragically passed away, :(( but left me Waltzing with 872 million pounds...

...I really ought to get on to it... :))

[the big fella] 08/5/2018 18:12

Any mention of trying to develop business in Nigeria and China is a red flag from me.

[seanworld] 08/5/2018 17:53

Net, I was expecting / hoping for growth and better numbers
from Interhigh.

I do echo the comments made by Alphabeta48
and Woodcutter this a.m with regards to these interims.
Receivables high and growth not as I had hoped
are concerning.

But I do share your opinion on enrolment / numbers
and why they do say weighted towards the 2nd half of the year.

I have not sold any today or at any point. Even when the share price hit the
recent high of low 40's. The company was never about rapid growth
especially short term. I will however hold off adding further.

[thechurch333] 08/5/2018 17:28

which could have been avoided with some honesty about what is really going on in their main UK business

[thechurch333] 08/5/2018 17:20

perhaps all the JV costs next year will also be "exceptional". Why not throw in the Chairman's salary while you're at it. I'm sure the auditors won't mind...
Seriously, though, a big part of the fall in the share price today is loss of credibility

[netcurtains] 08/5/2018 16:38

thechurch333: in line with expectations...
(but well done on selling! Well done - really)

[thechurch333] 08/5/2018 16:36

They have already warned on next year's numbers.

[mcfly79] 08/5/2018 16:29

The announcement says that the company is on to meet the current year profit forecast.For those going tonight please can you ask if they are confident in meeting next year's forecast. Next year is when things were due to really ramp up on the B2B front and the adjusted eps forecast is 1.9p. Thanks.

[seanworld] 08/5/2018 16:23

Disappointed with the numbers / sales shortfall
and if this has been mentioned earlier (not read posts as yet)
then we should have been undated on this prior to results.

Chairmans latest interview is also disappointing and frustrating!
The numbers are important hence why we are down 30%+ today!

Novembers "oversubscribed" fund raise now seems to have been
a master stroke as the share price at present is now 20% lower!
Im sure the institutions involved are also not in agreement with
his latest remarks.

JV's all sound very exciting but at present the market seems
to be ignoring (at best) all J.V this apply's to various positions I hold
in different companies.

[mcfly79] 08/5/2018 16:19

Just had time to listen to the directors talk interview. Thanks for posting.David Massie said exactly what I was thinking. Says that whilst he doesn't want to appear flippant, the numbers announced today in some ways are not that important because the things they are announcing today should create a step change in the group's size.Clearly there is work to do in making the Chinese business a success but the rewards could be huge and the company are clearly confident.