- NAKD's inability to grow sales or earn a profit in 2020 is unlikely to change despite the shift to eCommerce.
- Their primary brand, Frederick's of Hollywood faces stiff competition, lacks a modern niche, with a subpar social media following.
- The plan to use cash from recent share dilutions to make acquisitions faces competition from well-informed strategics and well-funded private equity.
- Management needs to act with urgency, but investors are not receiving enough data to make informed decisions.
- NAKD's fair value could be as low as $0.28/share and will drop as I expect the company to remain unprofitable.
For further details see:
Can Naked Brand Stock Recover? What To Consider