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small-cap

Steer Clear of This NASDAQ-Listed Small-Cap Stock – NAKD

Jan 12, 2022 | Team Kalkine
Steer Clear of This NASDAQ-Listed Small-Cap Stock – NAKD

Cenntro Electric Group Limited

Cenntro Electric Group Limited (NASDAQ: NAKD) is a business that manufactures intimate apparel and swimwear. A portfolio of company-owned and licensed brands is designed, manufactured, and marketed by the company.

Key Highlights

  • The company reported a decline of 20.21% in revenues to USD 6.57 million during H1FY21 (ended July 31, 2021) compared to USD 8.24 million during H1FY20.
  • Net loss during H1FY21 increased to USD 48.77 million from USD 11.56 million in H1FY20.
  • On December 31, 2021, NAKD reported that the previously announced acquisition of the outstanding capital stock of three Cenntro Automotive Group entities was completed. After the transaction was completed, the company changed its name to "Cenntro Electric Group Limited".
  • The company operates at a significantly lower net margin of -53.4% in Q2FY21 vs. an industry median of 12.0%.
  • Stock is currently trading below its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bearish indicator.
  • Stock is made a new 52 week low today.
  • NAKD's share price has declined 67.14% and 58.29% in the past three and six months.

Technical Price Chart (as of January 12, 2022). Analysis by Kalkine

Conclusion: Given the lackluster fundamentals, a significant correction in the stock price in the past three months and lack of visibility in bottom-line growth, we recommend an "Avoid" rating on the stock at the current price of USD 3.34, down 3.75% as of January 12, 2022, at 9:56 AM ET.

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