Who wouldn’t want a second chance at life? If one’ve been following the WallSteetBets Reddit fueled stock trading phenomenon lately, one may be led to believe that the only thing that came of it was that an old-school video game retailer named GameStop had its stock price rise to astronomical heights making thousands of everyday people who invested in the company rich in the process.
While that was the real headline grabber for a week or two, GameStop was not the only company to receive a temporary double-digit stock price increase thanks to WallStreetBets “Reddit Army’ as some call them. Naked Brands Limited (NAKD) a once-great clothing retailer wracked by COVID and a general move away from brick-and-mortar retail, was given the breath of life by the Reddit Army who invested with fury into the company to get it back on its feet.
The management team at Naked, down on its luck due to COVID, didn’t miss a beat and quickly capitalized on the increased stock price that the Reddit Army had given to it by rapidly paying down its debts, restructuring its management team, and coming up with a new turn-around plan to move more towards e-commerce. Out of the dozens of companies whose stock price increased due to the Reddit Army’s cash infusion, Naked Brands Limited was one of the only ones to see the sign of the life they were given and rush towards the light. If that ability to recognize opportunity and seize it is not proof enough of why this company is such a great opportunity to buy at the moment due to management’s quick thinking and commitment to its future then every other stock one pick might as well just be a shot in the dark. At the time of writing Naked’s stock price sits around $1.23. This company not long ago commanded a stock price of $150.
This company has just re-positioned itself to return to such levels and possibly reach $10 a share by summer 2021 and probably $100 by year-end if management executes its turnaround plan. Believe in this stock like thousands of others who have invested in it because it was one of the only companies to show initiative. Initiative and reputation matter in this world, and to see a company want to return itself to its former glory through the help of its own customers purchasing its stock is the purest form of conscious capitalism.
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