Naked Brand Group Ltd (NASDAQ:NAKD) Stock has been showing a steady growth over the past few weeks but every time the stock was met with an adequate resistance. In June, the Reddit fuelled rally brought the stocks from 50 cents to $1 in just few days. The interest for the stocks continues to remain, the investors continue to hold the stocks. The stock is expected to move higher still.
From monetary perspective the Naked brand is cheap and can attract typical value investor. Currently, the company boasts a market cap of $521 million with net cash value of $270 million with zero debt. Moreover, the license agreement between Naked Brand and Authentic Brands Group for the Frederick’s of Hollywood brands of undergarments has managed to generate significant revenue- last year company earned revenue nearly $56 million.
As soon as the company announced their potential merger with a partner, the shares rose to 10.1%. Further, the company is not limited to being an e-commerce lingerie company, which leaves it with a plethora of opportunities to capitalize on. The CEO of the company Justin Davis-Rice reinstated this by tweeting about the strong growth the sector is set to have over the coming decades.
However, investing in NAKD Stock is a dicey move where currently there are still a lot of risks associated with the potential acquisition.
