Wishpond Technologies Ltd

Wishpond Technologies Ltd (TSXV: WISH) is a provider of marketing-focused online business solutions providing digital marketing solutions that empower entrepreneurs to achieve success online. The company offers an all-in-one marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities from one integrated platform.

Why Should Investors Exit?

• Omicron spread could impact company’s organic growth: The resurgence in covid-19 cases could have a severe impact on the supply chain of various corporations which can lead to a lower product offtake, hence impacting the company’s business.
• Penny cap stocks could witness large volatility: Amid heightened volatility, penny cap stocks could witness large volatilities and it would be difficult for investors to easily get out of the stock given lower average traded volume in these counters. Hence, investors are exposed to liquidity risk as well.
• Technical weakness: WISH shares are forming a lower top and lower bottom kind of price pattern which is typically considered as a bearish trend in the stock. Also, its shares are trading below its crucial long-term support levels of 200-day SMAs, and moving average is falling, a bearish indicator.

Technical price chart (as on January 07, 2022). Source: REFINITIV, Analysis by Kalkine Group 

Stock recommendation

Despite Wishpond Technologies reported decent performance in the quarter just gone by, the company is exposed to a lot risks ranging from decline in the organic performance in the upcoming quarter on the back of resurgence in the omicron cases, liquidity risks and sharp market volatility risks. Also, technically its shares are hovering in a bearish channel, and below its crucial long-term support level of 200-day SMA, implies a long-term bearish trend in the stock. Hence, we recommend a “Sell” rating on “WISH” stock at the closing price of CAD 1.31 (as on January 07, 2022).

1-year price chart (as on January 07, 2022). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.