Inner wear apparel brand Naked Brands (NASDAQ:NAKD) might have had a Reddit fuelled rally not too long ago but the stock has been in doldrums in recent times. Recently the company got one of its latest notices from NASDAQ in relation to the failure of its stock to maintain a minimum bid price of $1.
While the company does have until October 25 to become compliant again, it might be a good idea for Naked Brands to explore the possibility of a reverse stock split.
If the company decides to do so then the stock is going to get out of the penny stock doldrums within which it has been stuck for quite some time.
That will be the second reverse split in two years and could well prove to be the only way in which Naked Brands can stabilise its stock price in the short term. However, if that happens then it might be a good idea for investors to consider sitting on the sidelines when it comes to the Naked Brands stock.
Market Action
NAKD stock closed higher by 29% to close at $0.8180. Total volume was 450 million shares, compared to its 30-day average volume of 85.47 million shares.
 Stock Continues the Monster Rally This Week){kind=link}