Naked Brands jumps after disclosing Ault Global 6.4% stake
Naked Brands Group shares traded higher in early trading on Friday after the company disclosed that Ault Global holds more than 41.1 million shares — or 6.4% — of its equity.
Video Transcript
- Another stock that caught my eye that's actually a top trending stock on yahoofinance.com is called Naked Brand. And sort of as the name indicates, this is a maker of intimate wear. It's based in New Zealand, and the company disclosed a stake by a new holder called Ault Global Holdings. 6.4% is that stake.
The stock also probably on that list of the most watched because it is a so-called meme stock. It's one of the stocks that caught the attention of Reddit-based traders earlier in the year. At one point, the shares were up as much as something like 750%. Now, they're still up more than 200%, more than 250% at year to date. It's still though, effectively, a penny stock. It trades for less than $1.
And the market cap is still under $500 million, but still, I guess, you know, Myles, there's been a lot of talk recently about how retail traders not as involved in this market. You get-- you get little fits and starts though. You get little examples perhaps like this.
MYLES UDLAND: Yeah, I mean, look, people-- people playing penny stocks, or stocks that have a low per share price, that's-- that's not particularly new. The ease with which people can do that is obviously new in the market as we get inception here on our screen. The ease with which you can do that, going on Robinhood and buying you 10, 15, you can buy 100 shares in Naked Brands for, what's the math on that? $70.
So, you know, sure. It's-- it's fun to play around with. The company actually came to market-- has come to market a couple of times over the last few months. They've raised $50 million back in early February. The company also came out and did a-- did a financing here to get rid of some of their-- extinguish some debt. And then, the company has acknowledged that they need to get the stock price back above $1 to be within compliance.
You can just do a reverse stock split there. That's not all that big a deal. So, you know, company up here with the new big shareholder in the mix. Always interesting to see how a business can try to make the meme application of the name turn it into something good. So, you know, again, Naked Brand has raised quite a bit of money here to try to actually make something out of this period. And we'll see how long it goes.
- What I love about that chart is how close to zero it was at the beginning of the year. Almost was at zero. So, I don't know how many pennies, it was a true penny stock at that point in time.
