The disruption brought about in the markets by retail traders on platforms like Reddit earlier this year had resulted in many lightly traded stocks going on to record enormous gains.
One such stock was Naked Brands Group Ltd (NASDAQ: NAKD), which managed to record significant gains on the back of such actions. However, the effects of such trading activities are now fading and that may not be a particularly welcome development for the Naked Brands stock.
At the start of the year, the stock had been trading at levels below $1 but due to the actions of Reddit investors, the Naked Brands stock eventually hit $3.40 a share. The company is involved in the intimate apparel space but in recent times, it has been rebranded as a potential e-commerce play. The stock has declined considerably and hence, could well prove to be a buying opportunity for many. At this point, the company has no debts and on top of that boasts of a strong cash balance as well.
Finance and Tech Contributor