Naked Brands Ltd (NASDAQ:NAKD) Stock Moves Toward $1 On Hefty Volume
Anyone who is currently tracking the premarket action might have noticed that the lingerie company Naked Brands Ltd (NASDAQ:NAKD) has come into sharp focus among investors. The company’s stock has been one of the more notable gainers during the premarket trading period and ended up with gains of as much as 31%.
Market Stats
On Monday, NAKD stock jumped 6% at $0.7085 with more than 35.95 million shares, compared to its average volume of 58.92 million shares. The stock has moved within a range of $0.6718 – 0.7100 after opening the trade at $0.69. Moreover, the stock is up another 30% in the pre-market session on heavy volume.
The Merger Boost
The stock after it emerged yesterday that the company had reached an agreement with regards to a merger with Cenntro Automotive Group, an electric vehicle firm. Considering the fact that the electric vehicle space is growing at a breakneck pace, the merger led to a flurry of activity in the Naked Brands stock.
Justin David-Rice, who is the Chief Executive Officer of the company, spoke about the possibility of the merger back in September this year. He stated that the after having conducted considerable research the company had stumbled upon an opportunity in the clean energy space that could prove to be disruptive.
In addition to that, the company had also noted at the time that a definitive agreement with regards to the same could be reached soon. The announcement from Naked Brands yesterday was a significant one and it is going to be interesting to see if the stock continues to surge today.
Key Quote
“After assessing numerous companies with promising, innovative technologies, we believe Cenntro offers the most compelling opportunity, as it not only has unique commercial EV technology, but has proven that it has been able to manufacture and deliver growing numbers of commercial electric vehicles that are being used by many of the leading consumer companies,” said Justin Davis-Rice, Chairman and Chief Executive Officer of Naked Brand Group. “Together with Cenntro’s outstanding vehicle pipeline, I believe the combined company will give our shareholders the opportunity to participate in a company that has reached an inflection point in its development that together with the Naked Brand Group balance sheet, will produce tremendous growth.”
Traders Corner
NAKD stock is trading above the 20-Day and 50-Day Moving averages of $0.66 and $0.65 respectively. Moreover, the stock is trading above 200-Day moving average of $0.71. The stock is up 31% in the past 3-month.
