On a split-adjusted basis, NAKD stock traded for $600 per share in 2018, so the stock is still down more than 99% from that level. Source: Shutterstock Why has Naked Brands been a catastrophic loser for its longer-term investors? Simply put, the business never achieved any significant commercial success.
Full Answer
Is naked Brands stock still down 99% from its 2018 high?
On a split-adjusted basis, NAKD stock traded for $600 per share in 2018, so the stock is still down more than 99% from that level. Why has Naked Brands been a catastrophic loser for its longer-term investors?
What if NASDAQ had not granted Nakd stock an extension?
If Nasdaq had not granted an extension, then NAKD stock would have been delisted promptly. That, in turn, would have killed any remaining speculative appeal around the stock and caused shares to tank. That said, merely receiving a stay from being delisted has solved precisely nothing as far as the company’s problems go.
Is naked Brands’ stock split a rounding error?
That said, this is a rounding error in the bigger picture. On a split-adjusted basis, NAKD stock traded for $600 per share in 2018, so the stock is still down more than 99% from that level. Why has Naked Brands been a catastrophic loser for its longer-term investors?
Should you invest in naked after the reverse split?
While I see little merit in Naked’s business in general, if for some reason you do want to invest, it’d generally be advisable to wait until after a reverse split is executed. Having another six months to regain listing compliance is something.
Why did NAKD stock go down?
By the beginning of March, the stock was back down to 48.9 cents as news of the virus spreading in China prompted concerns about a U.S. pandemic. On March 9, Naked shares dropped all the way down to 36.1 cents in intraday trading.
What happened NAKD 2018?
In 2018, the stock was trading at over $675 a share. But that was a different company, with fewer shares available and a smaller footprint. Today, NAKD stock is trading for less than $1 a share. And that's after a 358% increase year-to-date.
Will NAKD stock recover?
The retail trading frenzy breathed new life into Australian undergarment company Naked Brands International (NASDAQ:NAKD). NAKD stock was popular among meme stock traders, which drove its price higher earlier this year.
Is NAKD going out of business?
Pending shareholder approval at a special meeting on Dec. 21, Naked Brands will merge with Cenntro Automotic Group, an electric vehicle (EV) technology firm. The new company will go forward under the Cenntro name, albeit with the NAKD stock symbol. Upon finalization, Naked Brands will cease to exist.
What happened to Naked Brand stock?
On the last day of 2021, Naked Brand Group completed its acquisition of Cenntro. In connection with the completion of the acquisition, the company officially changed its name to Cenntro Electric Group Limited, and took over the ticker CENN stock.
What Naked Brand does?
Naked Brand Group Ltd operates as an intimate, apparel and swimwear company. The company design, manufacture and market a portfolio of company-owned and licensed brands.
What will happen to NAKD stock after merger?
Per the terms of the merger, existing NAKD shareholders will own 30% of the combined company. Cenntro's existing investors will hold the other 70%. That gives this deal an implied valuation of about $1.7 billion.
What is the prediction for NAKD stock?
The recent consensus of analysts on NAKD is that the share price for the short-term is a downtrend, And the target price would be $2. As of Jan 13, 2022, NAKD is trading at $2.61, The possible nearest targets would be $2.38 and $2.84 as the lowest and highest price targets respectively.
Is NAKD stock a good buy?
It has been an extraordinary year, and to be fair, still a profitable one: NAKD stock has still gained 74% so far in 2021. 2022 should be quieter, at least on a relative basis, as Naked becomes Cenntro Automotive.
Who owns NAKD stock?
Institutional Ownership and Shareholders These institutions hold a total of 1,325 shares. Largest shareholders include Deutsche Bank Ag\, N.E.W. Advisory Services LLC, and Cwm, Llc.
Did NAKD change their name?
FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: NAKD), a leading EV technology company with advanced, market-validated electric commercial vehicles, today announced that its trading symbol on the Nasdaq Capital Market (NASDAQ) will change from “NAKD” to “CENN” at the open of market trading on ...
When did naked brand get its break?
Naked Brands recently came into its present being via a merger. Naked, itself, got its big break in 2009. It appeared on Dragon’s Den, a Canadian equivalent to Shark Tank where businesses pitch themselves to venture capitalist investors. As a result of that publicity, Naked’s business took off. The company brought in more prominent management and moved to New York.
How much money did Bendon lose in 2015?
Bendon consistently lost large sums of money in operating its business. For full-year 2015, the company lost 13 million, with that growing to 21 million in 2016, and 37 million of losses for the 12 months ending in January 2018 (figures in New Zealand dollars). And, in the most recent year, Bendon’s revenues dropped from 152 million to 131 million.
Does NAKD stock have a deal with CVS?
NAKD stock briefly popped as much as 50% on Tuesday following the company’s latest news announcement. It stated that it has an agreement with CVS (NYSE: CVS) to distribute the Heidi Klum line of products in 4,000 stores.
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What brands does Heidi Klum sell?
The newly formed company now boasts brands that include Heidi Klum Intimates, Bendon, Fayreform, Pleasure State, Lovable, Heidi Klum Swim, Naked, Hickory, Bendon Man, and Davenport. The company claims that its products are currently available at retail locations in 44 countries and online. Holdco's offerings will also be sold at 61 Bendon retail ...
How much did naked brand lose in 2019?
For full-year 2018, for example, Naked Brands generated $95 million in revenues, while losing $19 million in the process. In 2019, long before the novel coronavirus hit, its revenues slumped to $76 million while its operating losses increased. So, don’t merely blame Naked’s problems on the pandemic, or assume a recovery is coming as ...
How much cash does naked have in 2020?
As of Jan. 31, 2020, Naked had just $2.5 million of cash on hand. Subsequently to that, it raised capital both by issuing more stock to the public and taking on debt. When you’re losing $34 million a year on revenues of less than $60 million, it’s hard to bring in enough new cash to keep the lights on, however.
What happens if a stock price falls below $1?
Normally, the Nasdaq requires that companies keep their share prices above the $1 mark. If a stock price falls below there, the Nasdaq sends a warning. And if the share price stays below $1, the exchange revokes the listing. That said, the Nasdaq has been more lenient recently due to Covid-19.
How much did the company lose in fiscal 2020?
For full-year fiscal 2020, the company’s loss ballooned to $34 million even as revenues plunged to just $59 million.
Is the Nasdaq lenient?
That said, the Nasdaq has been more lenient recently due to Covid-19. It has not immediately revoked many listings, instead giving companies a longer curative period to bring their shares back into compliance. Naked Brands was one such recipient of this policy.
Is naked brand solvent?
Naked Brands was already in a downward spiral long before Covid-19 hit. It’s far for clear that it had a viable strategy that would allow it to remain solvent even at that point.
Can a reverse stock split cause negative pressure?
That, in turn, would likely cause negative pressure on the share price.
How much did naked brands lose in 2019?
For full-year 2018, for example, Naked Brands generated $95 million in revenues, while losing $19 million in the process. In 2019, long before the novel coronavirus hit, its revenues slumped to $76 million while its operating losses increased. 10 of 2020’s Most Fascinating SPAC Stocks.
How much cash does naked have in 2020?
As of Jan. 31, 2020, Naked had just $2.5 million of cash on hand. Subsequently to that, it raised capital both by issuing more stock to the public and taking on debt. When you’re losing $34 million a year on revenues of less than $60 million, it’s hard to bring in enough new cash to keep the lights on, however.
What happens if a stock price falls below $1?
Normally, the Nasdaq requires that companies keep their share prices above the $1 mark. If a stock price falls below there, the Nasdaq sends a warning. And if the share price stays below $1, the exchange revokes the listing. That said, the Nasdaq has been more lenient recently due to Covid-19.
How much did the company lose in fiscal 2020?
For full-year fiscal 2020, the company’s loss ballooned to $34 million even as revenues plunged to just $59 million.
Did naked brand get divested?
Naked’s financial situation got worse and worse as its operating losses mounted and its share price plunged. As a result, in January of last year – again, before the pandemic – Naked Brands ironically divested its Naked brand, selling it to an Italian apparel company.
Will naked brands reorganize?
And now, with the apparel industry in tatters thanks to the pandemic, it seems likely that Naked Brands will have to reorganize its capital structure, which in turn would probably wipe out existing shareholders. Naked Brands has avoided its stock becoming worthless just yet.
Is naked brand stock revoked?
It has not immediately revoked many listings, instead giving companies a longer curative period to bring their shares back into compliance. Naked Brands was one such recipient of this policy. Nasdaq will now be giving the company until May to get its stock price back to $1 or above.
NAKD Stock Is No Longer Relevant
At some point in time, the brands under Naked Brand Group may have attracted consumer attention. Along with its namesake brand, the company commands Frederick’s of Hollywood, Heidi Klum Intimates, and Davenport.
Broader Fashion Market Offers No Respite
Although Smith’s assessment may be anecdotal – I have no idea how he conducted his surveys – it makes sense. If you want to make a statement, you’ll do so with external, conspicuous purchases: a fancy car, a nice watch, or even designer jeans.
NAKD Stock Chart
A look at the chart shows just what I’m talking about. Is this not one of the worst charts you’ve ever seen?
Bottom Line on Naked Brands
Revenue continues to sink with first-half sales falling more than 25%, while losses continue to erode the financials. As one might expect, the balance sheet is a disaster too.
A Pattern of Losses
- Naked Brands recently came into its present being via a merger. Naked, itself, got its big break in 2009. It appeared on Dragon’s Den, a Canadian equivalent to Shark Tankwhere businesses pitch themselves to venture capitalist investors. As a result of that publicity, Naked’s business took off. The company brought in more prominent management and moved to New York. Seeking more p…
More Capital Needed
- As the company’s most recent annual filing noted, it needs more money to pursue its business plan. And it likely won’t be coming from operations because, as noted, it consistently loses money. Naked Brands stated that it is: I’m deeply skeptical that a company of such limited size and resources can manage a far-flung global business. The Naked division is rooted in North Americ…
New Deal Likely Won’T Change Much
- NAKD stock briefly popped as much as 50% on Tuesday following the company’s latest news announcement. It stated that it has an agreement with CVS (NYSE:CVS) to distribute the Heidi Klum line of products in 4,000 stores. It appears, from reading the company’s latest annual filing, that this was already in the works. The company reported that it was ...
Industry Struggles
- Even if Naked Brands were making solid profits now, its outlook would still be cloudy. That’s because its industry is in a slump. Take a look at Hanesbrands (NYSE:HBI). Hanesbrands manufactures and sells apparel brands including Champion, Hanes, Playtex and Wonderbra. HBI stock dropped 19% on Wednesday following a weak earnings report. It’s far from the first stinke…
Nakd Stock Verdict
- For now, NAKD stock seems like a clear and easy avoid. The stock jumped sharply on a press release relating to the CVS partnership that gives little in the way of financial detail. The fact that existing shareholders are eager to sell stock should be a major red flag. And the industry as a whole is facing difficulties. It’s not a good combination for Naked. At the time of this writing, the …