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.
Contextlogicinc
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
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 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 ContextLogic accumulation areaWISH had an IPO price in 2020 of $24 and now the price dropped to 7.55usd.
ContextLogic Inc. (WISH) financial results or why it went down:
The good:
Revenue per Active Buyer was $22, an increase of 21% year-over-year
ProductBoost revenue increased 11% year-over-year to $50 million
Logistics revenue in the second quarter was $228 million, or a 126% year-over-year increase.
The bad:
Marketplace revenue decreased 32% year-over-year to $378 million in Q2
Buyers during the quarter declined 44% year-over-year to 17 million
Monthly active users declined 22% year-over-year to 90 million
Active buyers decreased 26% year-over-year to 52 million
Cost of revenue for the second quarter of 2021 was $272 million, a 31% year-over-year increase
Q2 gross profit was $384 million, down 22 percent year-over-year.
On 8/13/2021 Analyst Stephen Ju from Credit Suisse Group Lower Price Target for WISH from $24.00 to $19.00
Retails patience waning, almost time to flyTechnical analysis:
Clearly a larger harmonic structure at play here. There's no telling yet what exactly is forming, but I outlined a Bearish Bat pattern to 1) give me hopium that selling will end around $8.15 and 2) with COVID, it's only fitting the chart would form a bat.
We've been in this descending channel for the entirety of July so far. I expect this to breakout and turn sideways until early August, where I then expect us to start making higher lows. I expect price to rise to $12 in August.
Fundamental analysis:
With the delta variant spreading, we could potentially see another lockdown (rare), and that would expedite this trade as ecommerce will once again lead the way.
WISH might hire a new CFO with commendable credentials and the market might react well to it.
WISH might announce a very good Q2 report on August 11th and once again prove its value.
How I am trading it:
I am already deep into WISH as-is, but I am looking to add more here and around $8.15 and lower if I can get it that cheap. I do not plan on selling this company as long as it's fundamentals stay true. Long term target: $28
This is not financial advice.
WISH ContextLogic Buy RumorsI know this rumor isn`t new, but makes us think a little bit about WISH`s valuation.
One person close to WISH`s Insiders said Amazon offered $10 billion all-cash to buy the company, and Wish's CEO didn`t agree.
Looking at today`s Market Cap of only 6.438Bil, i would say that from a valuation point of view you can buy it cheaper than Bezos now.
My short term Price target considering also the Avg. Volume of 59Mil per day is the 15usd resistance.
I look forward to read your opinions about it.
Buying the dip! WISH to $22The pullback continues, but the mission remains the same; the fundamentals remain the same. This is nothing more than an opportunity to load up more shares. Reminder: 7.7B market cap. Last quarter revenue: 772 million... This is a stock you hold when you can get it at these prices.
I am expecting the local bottom to form at $11.30ish as there is a nice volume shelf there. I have buys set at 12.35 and 11.40, which should give me an average buy in price of around $11.80, considering my other buys.
Technical analysis:
We failed to pass the $15 supply zone. We're simply heading down to $11.30, grabbing liquidity and will reattempt to breach $15. I am eyeing the 38.2 retrace fib for a bounce. I think price will respect those trend lines, even though it's rudimentary, I find success with this sort of method and I'm sticking with it.
Disclaimer: this is not financial advice.
WISH ContextLogic Inc. Price TargetsBrokerage firms use ratings when they issue stock recommendations to stock traders.
The usually have 1 year target from the moment the release the Ratings.
On 5/13/2021 Credit Suisse Group Brokerage Lowered the Price Target from $31.00 to $24.00 and Outperform Rating
On 3/9/2021 Citigroup Brokerage Lowered the Price Target from $24.00 to $20.00
On 1/11/2021 JPMorgan Chase & Co. Brokerage Initiated Coverage with a $30.00 Price Target and Overweight Rating
Looking at the volume and ratings, i would expect a short term upside potential!
