ContextLogic's Strategic Move: Unlocking Value Via Qoo10 DealContextLogic Inc. (NASDAQ: NASDAQ:WISH ), commonly known as Wish, has announced a groundbreaking agreement to sell its operating assets and liabilities, including its renowned Wish ecommerce platform, to Qoo10 for a staggering $173 million in cash. This move, characterized by industry experts as both innovative and forward-thinking, marks a significant shift in the global ecommerce landscape.
Maximizing Shareholder Value:
The decision to sell the operating assets and liabilities to Qoo10 reflects ContextLogic's ( NASDAQ:WISH ) unwavering commitment to maximizing shareholder value. With the purchase price representing a substantial premium of approximately 44% to the closing stock price prior to the announcement, shareholders stand to reap significant benefits from this strategic transaction. Moreover, the acquisition is expected to significantly reduce ContextLogic's cash burn rate, paving the way for a more sustainable financial future.
Monetizing Assets and NOLs:
One of the most compelling aspects of this deal is ContextLogic's ( NASDAQ:WISH ) intention to utilize the proceeds to monetize its Net Operating Loss ("NOL") carryforwards, which amount to approximately $2.7 billion. By effectively leveraging these tax assets, the company aims to unlock additional value for its shareholders, further enhancing the appeal of the transaction. This strategic focus on capital optimization underscores ContextLogic's commitment to driving long-term growth and profitability.
Global Expansion and Synergies:
The integration of the Wish platform into Qoo10's extensive network is poised to create a global ecommerce powerhouse. With Qoo10's operational expertise and Wish's cutting-edge technology, the combined entity is well-positioned to capitalize on the cross-border ecommerce market. Merchants and consumers alike can expect enhanced offerings, including a broader product assortment, improved logistical capabilities, and a seamless shopping experience. This alignment of strengths underscores the strategic synergies inherent in the deal and sets the stage for accelerated growth on a global scale.
Protecting Future Potential:
In tandem with the transaction, ContextLogic ( NASDAQ:WISH ) has implemented a tax benefits preservation plan designed to safeguard its substantial NOLs. This proactive measure demonstrates the company's commitment to preserving its financial flexibility and ensuring the continued utilization of valuable tax assets. By instituting this plan, ContextLogic ( NASDAQ:WISH ) aims to shield shareholders from potential value dilution while fortifying its long-term financial position.
Conclusion:
ContextLogic's agreement to sell its operating assets and liabilities to Qoo10 represents a pivotal moment in the company's trajectory. By unlocking value through strategic partnerships, capital optimization, and prudent asset management, ContextLogic ( NASDAQ:WISH ) is charting a course towards sustainable growth and enhanced shareholder returns.
Contextlogic
Will WISH Share Bounce Back Soon as Renko Chart Tells us?ContextLogic (WISH) share price does not stop recording continuous and severe losses, while WISH share is trading below the $1 level now. While the sharp bearish tone prevails on the stock, as it traded below the short and long-term exponential moving averages.
Now, on the Renko chart, and taking into account the previous RSI readings, we can learn that the long series of losses for WISH share price usually ends with the RSI reversing from the oversold territory as shown in the chart.
Accordingly, we find that WISH share is now in the oversold area, while we keep an eye on the level of 0.6258, which may provide a possible rebound point for the share from the oversold area, to test the price range shaded in yellow, to target after that the level of 0.9786 in the short term.
In the opposite case, the pullback of WISH share price below 0.6258 and the failure to recover it, may invalidate the previous hypothesis and may lead WISH share price to further decline towards new historical low levels.
Concerning fundamentals, ContextLogic missed EPS estimates of -$0.16 per share by posting an EPS of -$0.18 per share, as well as revenue of $125M versus the projected revenue of $135.77M in the third quarter. Furthermore, the company anticipates additional operational losses in the fourth quarter ranging from $90-110 million.
ETHEREUM CONTEXT ANALYSIS QUICK UPDATE (BEWARE!)This is just something that I must alarm people about especially those that are way too new in the market right now regarding the Ethereum price action. Please don't get jebaited by this candlestick, I swear to gosh I will frown at you for even considering buying here with the SP500 and NASDAQ so much red and no confirmation. If you don't want to short, that is absolutely fine to wait for confirmation which you should always do.
The rule of hanging man candle stick is that it reverses to the downside if the next day candle DOES NOT close higher than it and will most likely fail. This is especially stronger in a bear market, a trending market more specifically. Be warned and manage your risks!
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Vish V for VictoryNice trend line breaking on log scale.
If q2 GDP growth is negative, we are technically in a recession.
thus, commodity price will be driven down, and FED could ease up their monetary policy.
Thats nice for the capital market.
WISH upside momentumWISH is now a shadow of the company that was rumored that Amazon offered $10 billion all-cash to buy it and Wish's CEO didn`t agree!
Now its value is $1.5Bil
But Investors are confident as WISH approaches its next earnings release.
Analysts expect WISH to post earnings of -$0.10 per share, an year-over-year growth of 52.38%.
Instead the consensus estimate is calling for revenue of $211.19 million, down 72.64% from the prior-year quarter.
Will it reach $3.65 or $5?
Looking forward to read your opinion about it.
Wish Downward Wedge Breakout PT $11.70Wish finally broke out of long downtrend. Best is yet to come.
Bearish Trend for WISH Almost Complete P2...If you've been a follower of my analyses on WISH, you would know that this stock has been following a downward channel in a grand Elliot-wave sequence. We are coming close to the end of the impulse, which would be around $1.27. After, we will get an ABC wave to the upper trend-line. There are two ways of interpreting the chart:
1) The wave that's about to finish was impulsive wave 3/5. We then get ABC wave 4, unable to break the channel, followed by the last wave down to penny land (~.75)
or
2) The wave that's about to finish is wave 5, evidence of that being macro oversold conditions. We break channel if this is the case for a short-squeeze, super bullish move.
We are currently in the Bear Market territory that we called last year. The entry for both is the same, bottom of the trendline, historically, Fibonacci 2. Things will get interesting soon so have patience and diligence during these times.
Best,
Ash
#WISH is not a matter of IF, is a matter of WHEN!⏲ Get ready..🚀Hi All, my main 3 take-outs from this analysis are the following:
1- I do not agree with those who say that Wish has no upcoming support and that it is in free fall! Not at all! The support is a static one, it is very visible in the daily chart, and it is shown in red. The lower trendline of the descending wedge is actually acting as support and the price is definitely feeling that floor
2- Despite the lower lows of prices, RSI is showing flat and even higher lows, which is a sign of loss of strenght by the sellers and possible reversal soon. So, to me is not a matter of IF, it is just a matter of WHEN!
3- The price might try to breakout upward the wedge ideally by the end of January, as the 2/3 of the wedge comes exactly in that area. In any case the price should be out of it by April the latest, as the apex is in that time area.
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
Future of WISH - Best TAI truly see this playing out - WISH is in a zig-zag pattern (bearish). The 5th wave will end when we touch the bottom trendline. The timeline for this bearishness is 4-6 weeks with a target of $1.7-$2. Depending on the time it takes, the equivalent price on the trendline will be the bottom. We will then get an ABC recovery, following our historical WISH ABC Fractal which will take us to the upper trendline. The only way this gets invalidated is if they release PR early.
Charting WISH is so easy :) Be diligent and good-luck!
#WISH close to a bullish reversal? Here it is why... is why...Hi All, my main 3 take-outs from this analysis are the following:
1- Price is still moving inside the red falling wedge, finding static support in the lower red trendline
2- Strong divergence between MACD and prices, suggesting that the strenght of the sellers might have come to an end
3- In the next intraday sessions, it might be possible to see a further run up towards the 3.95-4$
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
#WISH Still moving inside the falling wedge. I am LONG!Hi All, my main 3 take-outs from this analysis are the following:
1- RSI and MACD showing bullish divergence in the daily chart
2- Price action is moving inside a falling wedge and I would expect a rebounce from these price levels today or tomorrow the latest, in order to see a recovering and a possible breakout of the falling wedge at around mid-January
3- Shrt term target is 9.40$ to close the daily gap, while my medium long term target is 15$
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
I WISH things get better I'm not an investor in Wish. I merely trade the ride down. As the market is correcting, expect better deals soon. I will love to see WISH at $2, conforming to my ultimate ultra bear impulse count. If that were to happen, it would be near New Year's Eve, touching the trendline. WISH needs good PR ASAP for the bullish fractal to play. As per my last post, I got in at $3.55 and sold at $3.99 as a trade. Wish will moon one day, but who knows in this market... Already oversold so keep an eye out!
Wishful thinking is needed for investors. Stay diligent & good luck!
$WISH Wish Context Logic Analysis $Wish Context Logic Analysis
NOTES:
- Wish is currently at all time low-ATL
- There are currently 2 RSI takeaways:
-- RSI Divergence is shown on the chart: followed by price correction, white line chart on RSI
-- RSI Convergence is shown on the chart last week: will follow by price upward momentum, shown in yellow on RSI
TAKEAWAY:
- Price will move higher towards the mid-level support line at around $4.75/s
- WATCH the mid-level support line at $4.75.
-- IF BOUNCE the price will move lower
-- IF BREAK the price will continue to $6/s range
REMEMBER: if you have a stock in mind, let me know I will upload a TA.
WISH - Possible a rebounce today. 1H chart RSI oversoldHi All, my main 3 take-outs from this analysis are the following:
1- The hourly chart shows RSI in oversold territory with high chances of a rebounce
2- Price might be retesting the resistence at arund 4.60$ in the next days
3- Still valid the possibility of an upward breakout of the descending wedge shown in the daily chart
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
WISH - Moving in a descending wedge, possibly breaking up soon..Hi Guys, WISH is moving inside a falling wedge in the daily chart. Two third of this wedge is approximately end of January (blue box) where the price might realistically break the red trendline of resistence and reach the 6$.
If this will happen, next price targets will be the 9$ gap filling and mostly the 15$ level, which represent the target given by the height of the same descending wedge.
In addition to this, MACD on the daily chart is showing a huge bullish divergence which makes pretty realistic an inversion in the upcoming weeks.
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
WISH ContextLogic might have found a bottom.Hi All, my main 3 take-outs from this analysis are the following:
1- On June 8th 21 price broke the descending wedge resistence (daily chart) with huge volumes. Target for that move is 19.5$. Let's not forget about this
2- Price between 21 and 50 MA, going to probably test the 6.3$ static resistence
3- Bullish divergence between prices and RSI in the weekly chart
Not a financial advice, just personal opinion. Do your own due diligence and good luck!
WISH Fractal Analysis - I think It's Happening Again!From my previous post comment: Keep an eye out for any catalysts on WISH. Market makers might choose to make $4.61 (Fib extension of 2) the bottom if economic activity gets better and Q4 is green.
Present :
I will be following this fractal and devising estimations via the daily EMA. Wolfpack is going green on the weekly!
I am targeting one gap during the uptrend, 7.59-9.34. Traders usually exit when gaps are filled during retest.
The squeeze is commencing.
Wish indicator November breakoutWish timefib indicator - November 2021 breakout incoming with an equal measured time move
WISH upside potentialWISH is now a shadow of the company that was rumored that Amazon offered $10 billion all-cash to buy it and Wish's CEO didn`t agree!
Now its value is 3.454Bil and two weeks ago it was even lower.
But the holidays are coming and all ecommerce platforms will benefit from that.
Except for Oppenheimer, who downgraded WISH to Underperform setting a price target of $4.00, the others are more optimistic: Citigroup gives a neutral rating with a price target of 7.5usd, while Credit Suisse Group targets 19usd per share.
My target is the 9.4 resistance by the end of the year.
i`m looking forward to read your opinion about it.
WISH looks like following JMIA last year movementWish is likely go above previous ATH after gaining momentem.
Recent price movement seems like big player joining as if they have insights about next ER.
Hold on tight guys, we are about to blast off.
Bearish Trend for WISH Almost Complete...This will have a short squeeze one day but not until it bottoms out in the super oversold region.
WISH chart is perfect for examining Elliott Wave Extensions, which occur within impulsive structures.
Easy stock to make $$$ on if you know wave theory. My target is the green box!
I'm Expecting more downside in the short term before an uptrend...
WISH Looks like SNAP during bottomJust for fun.
Blue candlesticks were copied from SNAP during its bottom in 2018 market correction.
Do you guys see any alignment?
WISH we would gap already.Not a financial advisor.
I post my thoughts.
So the daily candle wasn't an idea close, personally I was hoping to close over $7.51.
I do have a previous post stating that WISH is coming out of falling wedge pattern - or nearly out of a falling wedge
We saw a textbook Shooting Star candle, rise in price and don't close the day strong - sellers get the price to drop a little more than we wanted at the end before close. However that doesn't necessarily mean we go down tomorrow.
Something to watch for is 9/7/21 day high to break. If it doesn't we will likely see a continued downtrend, due to the previous day doji. If it breaks above todays high, well then we most likely saw a false reversal.
Overall, I'm bullish here longterm. Short term presents many risks, so for those willing to enter must know that this isn't an ideal set up.
I entered nearly 2 weeks ago after a reversal. Tomorrow is an important day for WISH. If price confirms down trend watch for a reversal to close the week. If we break todays high watch for this to possibly gap up in the short term. (I am bullish short term - just mentioning both sides)
I do personally think due to the current state of the weekly candle, that we continue to see uptrend carry over this week. However other things in the market could also lead to WISH having a shake up this week. Watch the NDAQ, I believe that finished with a bearish candle for the daily chart. Could lead to a shake up in WISH short term.
Remember this is a high risk currently, so trade or invest with caution. I expect a lot of volatility in the short term.
I'm trading WISH, Short term I'm looking for $10 price target which would be a little over $9.80 due to the 200 MA on the (4hour char)
I do also have a price target of $16.35 mid term.
I believe a big break will happen after $8.12 (hope to gap up /halt)
Important numbers I'm looking for $7.75, $7.88, $8.12, $8.42, $8.95 and more.
RSI 42
Stoch dragging across the top on daily, Ideal for strength to follow.
Momentum reached positive levels yet low
MACD bullish
Good luck to all here, curious to see how this plays out the rest of the week. I am looking to be here long term, trading momentum throughout the process.
Feel free to comment your thoughts. All ideas welcomed.
