On Wednesday, the Naked Brand Group Ltd (NASDAQ: NAKD) stock experienced one of the more remarkable rallies as it soared by as much as 252%.
While the rally is highly impressive, it might serve investors well if they took a look at the reason behind it. The Naked Brands stock is currently under threat of being thrown off the NASDAQ Exchange due to its failure to maintain the minimum bid price of $1.
However, it seems that investors are trying to get the stock over that level so that it regains compliance. It seems that the non-compliance might be a thing of the past if investors continue with their strategy. On another note, it is also believed that the rally in the Naked Brands stock is related to the actions of members of the Reddit community WallStreetBets.
Members have propped up stocks in which there were significant short positions and many stocks have experienced unprecedented rallies in recent days. Hence, Naked Brands could be a stock to have on the watch lists for now.