Earlier on in the year, intimate apparel company Naked Brands Group (NASDAQ:NAKD) had emerged as one of the targets of retail traders from Reddit and the stock had made remarkable gains on the back of such action.
However, at the same time, it should also be noted that most of the meme stocks are also beset with risks and it is no different when it comes to the Naked Brands stock. As a result, many experts believe that the stock is still not worth considering for investors at this point in time.
Earlier on this year, the company managed to boost its financial situation by way of a private placement of as much as $100 million. More importantly, the Chief Executive Officer of Naked Brands, Justin Davis-Rise noted that not only did the company have $200 million in cash at the time but it was debt free as well.
However, the infusion of cash into the company’s books also led to the dilution of the Naked Brands stock. In addition to that, the mere availability of vast amounts of cash does not indicate that it is going to be helpful in growing the business. Hence, the current sentiments among experts regarding the stock.