[From Selling Bras to Cars] How This Stock Gave Holders the Ride of Their Lives

The transition was far from a fairy tale though. Picks from the Editor SPONSORED (Newsletter Continues Below) [Roger’s 5 Best Stock Patterns (#2 is shocking)](  If you want to learn which price patterns to pay extra attention to, make sure you attend the powerful “Pattern Trader” workshop. Roger Scott reveals 5 incredibly accurate patterns and the 2nd one is a shocking discovery. [Show me the DiscoveryÂ]( By clicking the above links, you agree to the Wealthpress [Privacy Policy]( An Electric Switch: How a Lingerie Brand Morphed into an EV Manufacturer  Hi Traders,  In the shadowy corners of the stock market, outside the gleaming limelight on big names, some unusual stories unravel. Case in point: the dramatic transformation of Nasdaq-listed Cenntro Electric from a lingerie retailer to a manufacturer of small electric trucks.  With a humble market value of around $85 million and sales that reached only 458 vehicles last year, this Chinese player certainly isn't causing any sleepless nights for Tesla. However, its corporate saga is, to put it mildly, one heck of a story.  Back in the meme stock frenzy of 2021, it was known not for engines and wheels, but for lacy numbers and seductive appeal as the lingerie seller Naked Brand Group.  Yes, the very same that sold lingerie online under the iconic Fredericks of Hollywood label, and owned Bendon, the underwear titan once endorsed by the likes of supermodel Elle Macpherson and later Heidi Klum.  In January 2021, its shares ascended a whopping 759 percent under the stock symbol NAKD. Its vocal supporters on social media fancied themselves the 'Naked Army'.  Yet, the honeymoon phase didn't last. The Naked Brand Group (NBG) stock took a sharp downturn, but executive chair Justin Davis-Rice capitalized on its lingering fame to rake in more than $200 million for the company by offloading stock.  Concurrently, NBG was completing the sale of the Bendon brand to Davis-Rice and former chief executive Anna Johnson for a mere NZ$1.  Fast forward to November, Cenntro emerged as the white knight, taking over the listing and control of the company.  In exchange for about 70 percent of NBG in newly-issued shares, Cenntro reversed its fledgling EV maker into NBG and walked away with a hefty $280 million in cash.  Simultaneously, it sold the Fredericks lingerie business to Davis-Rice and Johnson for a single Australian dollar.  Indeed, those shareholders who stayed loyal from the NBG days have been rewarded with a sinking feeling.  The company's shares have tumbled over 90 percent since the deal closed, and its operational performance hasn't exactly lived up to the hype.  Sales in 2022 barely touched $9 million and its cash reservoir has dwindled to $154 million.  Contrarily, Davis-Rice has reaped substantial rewards in recent years. In 2021, he received an award of phantom warrants, a type of compensation where the amount earned correlates with stock moves, but is disbursed in cash. If all the payouts from NBG's phantom warrants went to Davis-Rice, he would have pocketed about $36.7 million.  Meanwhile, the sale of two units to Davis-Rice and Johnson for less than $2 came with waived liabilities and forgiven debt totaling $70 million, reviving their balance sheets and boosting performance. However, they did not respond to requests for comment.  In smaller companies, scrutiny isn't as intense. "We follow the money and the largest companies dominate in terms of performance and attention," as Adam Epstein, of Third Creek Advisors, put it.  In a recent Telegram chat forum, one user posted, "NAKD taught us patience... CENN taught us to HODL! [Hold On For Dear Life]."  Another user pledged to get a tattoo including both names if Cenntro’s shares hit $500. Unfortunately, the shares currently trade at about 37 cents.  Perhaps dreams do require a pinch of realism, and a cautionary tale to those looking to find those dreams in a pinch.  Keep on keeping up!  John @ Traders on Trend  (In the next article: We're in a bull market, buy whay people in Wallstreet running scared? Find out below! 👇) Sponsored [How To Extract Profits From Uncertain Markets]( The news wants to scream “doom and gloom” about the current market. Conditions feel uncertain – that’s the prevailing sentiment. But guess what? There’s NEVER any real certainty in the market. Reveal how you can take advantage of this current market.[The #1 Strategy For Uncertain Market Conditions]( By clicking link you are subscribing to The Investing Ideas Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED How Nasdaq is Tackling the Issue of Tech Giants' Overgrowth  It appears we've got quite the conundrum on our hands.  America's tech giants have grown to such gargantuan proportions that they're literally too big to fit comfortably into the very index meant to track them.  Imagine outgrowing your favorite pair of jeans, but in this case, it's the Nasdaq 100 we're talking about, not denim.  And, to make matters even more complex, the growth of colossal entities like Apple and Microsoft has pushed beyond the maximum limit set by the index.  Due to this unusual situation, the overseer of the index, Nasdaq Inc., has decided to step in and initiate a rather unprecedented "special rebalance".  This is akin to adjusting the seams on the aforementioned pair of jeans to allow for a little extra room. This redistribution of weight among the members of the index is being undertaken to deal with the over-concentration caused by these tech leviathans.  The performance of these tech mammoths has been quite stunning, sparking most of the market's gains in 2023.  This, fueled by optimism over artificial intelligence, has led to fiery discussions on Wall Street over the sustainability of this top-heavy progress.  (article continues below) Sponsored [Your Money Under Threat: Don't Let History Repeat!]( From Brazil in 1990, Cyprus in 2013, to Canada in 2022, governments have frozen bank accounts when least expected. Now, under the guise of Federal Reserve System Docket No. OP-1670, the Fed has a plan that could take tracking to a whole new level. From your account balance to every transaction, nothing is off-limits! [Learn how to keep your finances secure here.]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  This move has been received with mixed opinions. Todd Sohn, managing director of ETF and technical strategy at Strategas Securities, believes it's a positive step as it reduces the risk from overdependence on these heavy hitters.  However, he also opines that it places an increased burden on the rest of the index members (or "the bench" as he cheekily refers to them) to bolster and improve their performance.  It's still early days and detailed information about this special rebalance is a bit sparse.  Still, Nasdaq's regulations stipulate that such an extraordinary rebalancing can be enacted when the influence of the largest players exceeds a predetermined limit.  On July 3, for instance, the combined weight of six companies (Microsoft, Apple, Alphabet, Nvidia, Amazon, and Tesla) amounted to a whopping 50.9%.  Now, according to Nasdaq, a rebalancing might be deemed necessary to reduce this joint influence to a more manageable 40%.  This rebalancing maneuver also assists fund managers who benchmark to the Nasdaq 100, allowing them to comply with SEC diversification rules that set a ceiling on the aggregate weight of the most substantial stock holdings.  In response to the announcement, shares from all these tech titans experienced a slump, with Alphabet and Amazon facing more than a 2% dip.  Although this reweighing will require some alterations in holdings by index-tracking funds, it is not expected to dramatically impact the Nasdaq's future performance.  Summing it all up, the influence of the larger firms will be trimmed down a notch and ideally, the lesser-known entities of the QQQ should gain a bit more influence. But, as Sohn quips, it won't be anything too major.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit tradersontrend.com/terms for our full Terms and Conditions.   [UNSUBSCRIBEÂ]( TradersOnTrend.com  COE MEDIA.   1126 S Federal Hwy Unit #827   Fort Lauderdale, FL 33316Â