Naked Brands (NASDAQ:NAKD) Continues to Trade in a Range: Now What?
3:28 pm Tuesday, September 07th, 2021
It goes without saying that much of the rally that has been seen in the stock of the intimate apparel company Naked Brands (NASDAQ:NAKD) has been speculative in nature. As a matter of fact, investors who are more concerned about fundamentals are almost certainly going to avoid the stock.
It was one of the original meme stocks which had rallied remarkably some months ago on the back of the actions of retail traders who are active on social media. At this point, the stock is trading at a premium since a meme stock premium has been priced in. That being said, there is another factor that is at play here and that is related to the potential merger that the company might be involved in.
Back on August 20, the company had hinted at such a merger and that had sent the stock soaring. Hence, if investors believe that the stock might go even higher due to the possibility of the merger, then it might be the right time to track the Naked Brands stock a bit more closely. Experts, however, believe that the buzz about a merger might not be a strong enough trigger to take the stock past $3.40 a share, its highest level in 52 weeks.
On the other hand, those who are involved in the meme stock community have been quite excited about the prospects of the Naked Brands stock in recent days. It is going to be interesting to see if the stock can go on such a rally again.
