I posted about Wish a few weeks back so please feel free to check that idea out, but long story short it looks like my double bottom theory has been invalidated. This has been an extremely difficult stock to hold (my cost avg. is just under $3) but I still do not believe that the price accurately reflects the value of this stock and that it has potential to reach the high single digits within the next year or two. What I wanted to draw everyone's attention to is the volume over the last 2 trading days. This stock typically sees 7-14m per day in volume. HOWEVER, yesterday the volume spiked massively to 30m and today hit 45m, which is absolutely massive.
So the question becomes what is causing this huge volume spike? Piotr is dumping his shares like crazy, and this is almost certainly him selling millions of shares. But why would he decide to dump so aggressively now rather than selling smaller amounts more frequently as to not depress the share price? I've seen speculation that he needs to reduce his holdings to 5% per a mysterious agreed upon buyout condition but that's a tough sell. Regardless, this is pretty unique behavior and large volume spikes tend to happen before large momentum shifts in stocks. I would anticipate another day of large volume tomorrow.
If anyone has other ideas feel free to share. There are still some big funds very heavily invested in Wish that do not want to see it fail. I realize how speculative this seems but it does look like something big is going on in the background with Wish. The recent CEO's departure would also fit well with the idea of a buyout or a big shakeup. Thoughts?
So the question becomes what is causing this huge volume spike? Piotr is dumping his shares like crazy, and this is almost certainly him selling millions of shares. But why would he decide to dump so aggressively now rather than selling smaller amounts more frequently as to not depress the share price? I've seen speculation that he needs to reduce his holdings to 5% per a mysterious agreed upon buyout condition but that's a tough sell. Regardless, this is pretty unique behavior and large volume spikes tend to happen before large momentum shifts in stocks. I would anticipate another day of large volume tomorrow.
If anyone has other ideas feel free to share. There are still some big funds very heavily invested in Wish that do not want to see it fail. I realize how speculative this seems but it does look like something big is going on in the background with Wish. The recent CEO's departure would also fit well with the idea of a buyout or a big shakeup. Thoughts?