Weyland Tech Inc. (WEYL) announced today that a shareholder update will be given. There really aren’t many details as to the specifics of the call but it’s worth speculating.Since the news broke many investors are buzzing about what they will talk about. Normally surprise calls like this mean good news. Before we get to deep into the speculation of what the CEO of Weyland Tech will say please notice that there are no real ads on this site and we can keep it that way, but we need subscribers and we want you to SIGN UP FOR PUSH NOTIFICATIONS to your desktop. It’s really slick every time we publish an article you get a notification. If we grow so big that its spinning out of control you can easily turn it off in the lower corner of the website. So, before you read another line sign up for the push notifications and we promise to keep you updated on WEYL and other hot stocks.
CALL IN DETAILS
Date : 12/18/18
Time : 11:00AM Eastern
Call In Number: 1 (701)801-1211
Code: 873-908-258
A REPLAY will be available at: 1 (701) 801-1218 /access code: 873-908-258.
We have gotten a lot of feedback from investors on what the key issues are. We have also been monitoring the chat boards on Investors Hub. The Investors Hub chat board on WEYL has actually made 22 on the Breakout boards and seems to be rising which indicates there could be something brewing. Most of the conversation is between“Bull” West Coast Snapper and “Bear” Crypto pips. The “Bear” has been posting non-stop with 190 posts since November 1, and only posts about WEYL and no other stock and doesn’t have a position. Easy to figure out what is going on there. The “Bull”has been around since 2006 and has over 8700 posts to his credit and seems to be focused on the naked shorting surrounding the stock.
Top Issues Dissected
Naked Short Position: Some investors are vehement that there is a vicious naked short in the stock. Others believe it’s market making activity. The one thing we know is that the stock is down and has had only 11 updates in the past 60 calendar days. That is roughly 70% down days that included an earnings report that blew expectations out of the water and insider buying by the CEO. The question is the CEO doing enough to combat the naked shorts? There is only so much a CEO can do before they become distracted and take their eye off the business. So investors should look to see the CEO comment on what he is doing to combat the apparent short and maybe give an assessment of how prevalent it is.
Dividend Status: The press release on Friday really left a bad taste with shareholders as they tried to decipher the legal jargon. Shareholders really wanted this dividend to break the backs of the shorts, but it hasn’t seemed to work. Instead of incurring the expense of mailing they are keeping everything in book entry. In my opinion, this is much better and I will explain why. Instead of waiting for WEYL to sift through 2000 shareholder transmittals investors can email the transfer agent to see if their shares were on the dividend list. E-mail [email protected] but I warn you that you have to have your act together and know how many shares you had as of 10/12/18. They need some verification of who you are by providing your name and share count. DO NOT CALL THEM.
I found out that all my shares in my E-trade account were NOT on the list. E-trade made some public statements that there were issues of fail to delivers and that those shareholders were aware of it. Everyone needs to understand if E-trade provided an AUDITED list and my name wasn’t on the list and I did 3 trades and have proof why on earth did E-trade send me a trade confirmation. What exactly is being held in my E-trade account? E-trade took my money and didn’t put my name on the list. Why would they do that? What investors all want to know is whether the DTC list and the brokerage lists matched. Hopefully Brent will shed some light on this key issue. Many investors want to know the answer to this. If there are any attorneys reading this, please comment and tell us if you think E-trade commit securities fraud?
Celebrity Director: Many want to know why Jon Najarian is on the board and what his contributions have been. It has been suggested that he could help in the fund raising or lend his name on road shows.
Fundamental Discussion: For the past couple of quarters the company has talked about AtoZPay and its revenues. No discussion was given on the last earnings release. Then there was the PT Rex Indonesia deal that discusses the last mile solution for packages. No details were given except that Rex ships 10,000 parcels a day. If the average parcel is $10 in value which is quite low and AtoZpay is used this deal brings in 36 million in transaction volume for AtoZPay. Additional metrics are craved by investors to evaluate this opportunity. Many investors have also asked that they get more granular in discussing margins and revenue growth and most importantly the customer acquisition cost.
Lawsuit Update: On November 14, 2018 WEYL filed their cross complaint against Ramasamy Ravindran peppering them with allegations of fraud in the transaction as well as criminal behavior. Based on the facts presented in the cross complaint it is going to be very difficult for Ravindram to get back his disputed shares. There is an overwhelming mountain of evidence to support the shares were gotten in a sham transaction whereby Ravindram misrepresented his ownership in the company and the revenues to inflate the purchase price, not to mention a forged signature. Furthermore, the contractual agreement supports the rescission of the shares. Ravindram never transferred the shares of TRC in exchange for the shares of WEYL. If WEYL wins this, investors want to know if 8.35 million shares will be returned the treasury or if it is just the 3.55 mil shares. WEYL mentioned in the latest 10-Q that they have “settled a suit against another shareholder in Singapore, in a confidential settlement that is favorable and non-dilutive to the Company.” Details would be nice.
Insider Purchases: Recently the CEO bought shares but none of his board followed suit. Investors see that Brent is committed but don’t see the same actions from the rest of the board members. Buying shares in the open market really ties an insider up so it really significant to investors when insiders do sizeable purchase.
Stock Buyback: Investors have indicated that if the company were to use some of its funds to buy back stock in the open market it would send a strong message to the shorts that their days are numbered.
Employee Share Compensation: During the last earnings report, there was a big block of compensation bestowed on employees at what works out to $1.08/share. Investors are hoping Brent will expand on the purpose of this compensation and how locked up it is and whether it will leak out into the market.
Uplisting: Some think that uplisting might help stop the short attacks, but you need to look no further than Overstock ($OSTK) to see that it doesn’t really help if they are determined. So, investors want to know if the company has engaged a firm because as of the last quarter many of the check boxed needed for a NASDAQ listing were met.
FINRA Complaints: Many investors have shown us their complaint filed to FINRA almost daily. They appearto be looking at it but taking their sweet time. Investors want to know if WEYL can confirm ifthere is an investigation into the market making activity on the stock.
Investment Summary
A lot is riding on this conference call. Brent will have to allay investor’s fears and show how the fundamental part of the business is performing. Based on the current stock market decline after excellent earning news and the dividend, the CEO will need to have a credible explanation of what exactly happened and what he plans to do to correct it. He will need to show investors his plan for better shareholder communications. He will also have to take responsibility for the miscues in the market and answer tough questions on why he changed the dates so many times. He is going to have to share his vision of the company and what is looks like in 2019 and point out the various milestones WEYL has achieved and what they are work toward. He is going to have to openly state why he feels WEYL is undervalued and how the company stacks up against others in the market place. If there is good transparent and open dialogue investors might rally around and support the stock. Should he be evasive and not genuine we could see a further slide in the stock as shorts dig in. The quick timing of this conference call usually means it’s going to be a positive call. This is a must listen to conference call.
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Disclosure: PSInvestor has NOT been compensated for the mentioning of the company above, but do have a LONG position in the company. To read our full disclaimer, CLICK HERE.