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.
WISH
The Wish Turnaround StoryNASDAQ:WISH The Wish Turnaround Story
Technical Analysis: Triple Bottom
Fun Facts:
- Delivery speeds average 8-day y/y improvement in Q1’23
- Customer order cancellation Rate dropped 56% y/y in Q1’23
- Buyer conversion rate improved by 18% y/y in Q1’23
- Customer retention rate improved by ~10% y/y in Q1’23
Financials:
March 2023 Cash Balance: $379 Million
Free Cash Flow:
March 2021 ~$350 Million
March 2023 ~$90 Million
($260 Million Improvement)
Short Term Investments:
March 2021 $154 Million
March 2023 $256 Million
($102 Million Improvement)
Total Debts:
March 2021 $48 Million
March 2023 $18 Million
($30 Million Improvement)
Operating Expenses:
March 2021 $563 Million
March 2023 $110 Million
($453 Million improvement)
* Q3 Savings on Operating Expenses expected to be around $14-$23 Million on Annualized Basis based on 17% workforce reduction *
Current Enterprise Value:
March 2021 ~$306 Million (Priced for Bankruptcy)
$50 Million Dollar Share Repurchase Program
Be warned: This info isn't a recommendation for what you should personally do, so please don't take the data as investment advice. As with any trade, always look first, then dive.
The $WISH Turnaround StoryNASDAQ:WISH The Wish Turnaround Story
Technical Analysis: Triple Bottom
Fun Facts:
- Delivery speeds average 8-day y/y improvement in Q1’23
- Customer order cancellation Rate dropped 56% y/y in Q1’23
- Buyer conversion rate improved by 18% y/y in Q1’23
- Customer retention rate improved by ~10% y/y in Q1’23
Financials:
March 2023 Cash Balance: $379 Million
Free Cash Flow:
March 2021 ~$350 Million
March 2023 ~$90 Million
($260 Million Improvement)
Short Term Investments:
March 2021 $154 Million
March 2023 $256 Million
($102 Million Improvement)
Total Debts:
March 2021 $48 Million
March 2023 $18 Million
($30 Million Improvement)
Operating Expenses:
March 2021 $563 Million
March 2023 $110 Million
($453 Million improvement)
* Q3 Savings on Operating Expenses expected to be around $14-$23 Million on Annualized Basis based on 17% workforce reduction *
Current Enterprise Value:
March 2021 ~$306 Million (Priced for Bankruptcy)
$50 Million Dollar Share Repurchase Program
Be warned: This info isn't a recommendation for what you should personally do, so please don't take the data as investment advice. As with any trade, always look first, then dive.
WISH long opportunityClearly bottomed over the past few months, down an unbelievable percentage to its ATH (yes, their core business is failing and their NI is ever shrinking)...
However, I could see the pattern above playing out from a technical perspective -- perhaps improved Q2 earnings being the impetus this month.
WISH Continuation of Momentum LONGWISH had a great day to finish out this past trading week.
On the 15-minute day, two highs are drawn as horizontal resistance using the high candles
with the wicks as "tweezer tops" while the support is drawn as a green line at a pair of
"tweezer bottoms"
I see this as a bullish continuation play for next week. A stop loss is set below the support
line at $8.30 with a buy order placed at $.05 above the current market. Targets are $.05
below each of the resistance lines with an approximate reward to risk of 15X.
This is a volatile small cap with the typical high-risk and high-reward scenario.
I will take call options at the strike $ 7.5 for expiration on 5/5 expecting a return on
risk of at least 75% leveraging the expected return on a similar stock trade.
$WISH potential SHORT/LONG targets
$WISH has clearly broken the support level at $1.20
Long target can be 1.20 (in case of pullback to test resistance level)
Short targets:
0.41
0.53
**Don't trade based on my ideas.. you are going to be broke
Wait... What! but Why???What's going on here?
Probably nothing
Everything is just fine...
Zero-sum game
15b vs 300m
David vs Goliath
Follow the money...
I have 0 clue what's going on! that's pure abstract imagination! Do your own research!
Look First/ Then Leap
GPIL Bullish looking in 3 HTF!#The Pattern is a simple Support and Resistance
Points to Look:
1.The Channel Pattern is slanted downwards, this pattern has a high success rate!
2.Inside the pattern the recent trend is Bullish (Bullish Candle)
3.There is 'W' shape recovery(21 July 2022 to Now) in the trend which is also a good bullish sign.
4.There is a chance of CONSOLIDATION and tern break-out! be patient, also given the approx. Entry Prize in the chart.
5.Despite all this wait for a confirmation bullish candle above 20EMA in 1 DTF tomorrow and then take the position.
$Happy Trading Mates$
Happy New Year, traders!✨
Life is an adventure that's full of beautiful destinations.
Remember that every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.
Wishing you many wonderful memories made in 2023.🌟
We wish you a Merry Christmas!🌟
Dear traders,
This year we faced a lot of obstacles and problems. For many, this year was phenomenally hard.
There is a famous quote by Marcus Aurelius “The impediment to action advances action. What stands in the way becomes the way.”
In any obstacle, there is an opportunity. What we should be doing, we should look at every obstacle that we face as an opportunity for us to grow and to make us stronger so that we can turn that into an opportunity. Every obstacle is the way forward.
I wish you all a lot of opportunities next year.
Merry Christmas!!!🌟
Christmas holidays
Trading vacation winter Santa gift christmastree marvel greeting wish newyear celebration
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.
Wish 22 vs Amazon 2001If history is any guide...
It can go to $0.69 just for the memes! Wish to the moon! don't try to outsmart Wallstreet just try to think like them.
I have been wrong 100 times with this one! I just don't want to be 100 + 1!
This is what true risk/reward looks like! Everybody is scared to death and the majority sitting at > -70% losses...
Please do your own research and listen to nobody!!!
Good time to get out wishLooks like it is at the peak of this run. The hanging man candle has shown its head. After this run I would expect to see it pull back and consolidate. It may have broken it's downward trend, but it is a bit too early to tell.
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.
Wishful thinking? Context Logic
Short Term - We look to Sell at 1.64 (stop at 1.79)
A Doji style candle has been posted from the high. The medium term bias remains bearish. The bias is still for lower levels and we look for any gains to be limited. Preferred trade is to sell into rallies.
Our profit targets will be 1.22 and 1.19
Resistance: 1.65 / 1.85 / 2.50
Support: 1.21 / 1.10 / 1.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
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
Bullish Turning point for WISHPositive: ++ Quarter and Year Earnings, ++ Enermous Potential, Morning Star Rating A
Shopping at GAPs..!These days, your stocks create big gaps (usually down side) after earnings!
Some People think this could be a good opportunity to enter a long position.
but
Is it really good to do that?
My simple answer to this question is:
No
Why?
Look at these examples in the past few months:
FB:
DOCU:
PYPL:
F:
ZM:
PINS:
WISH:
UPST:
BABA:
I hope you are convinced by now..!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
WISH LONGWish The Company Suffer From SELL-OFF WITH ALL THE GROWS STOCK Small Caps
Still Have 1.2B In Cash
Have A lot Short TERM Problem
Hyper Grow Stock
1Billon Market Cap Something Like This
P\S To Small
WISH shares hit significant low todayWISH hit significant low today with the Fibonacci circle hit and March 1, 2022 results coming in a few days should be a positive for the shares that were at $30+ at its peak.
