Reason #2: Consistent Growth Is The Name Of The Game
If you haven’t had the time to go over the most recent investor presentation from Naked Brands, it’s time to do so. The presentation offers quite a bit of information, and the overwhelmingly clear concept here is that the company is growing!
First and foremost, the company’s global eCommerce business is seeing strong growth, accounting for 32% of the company’s revenue. This has been a rub in the past, but it seems as though the company is quickly getting eCommerce under control, creating a valuable revenue stream in the process.
The company has also grown its wholesale arm substantially. In fact, today, there are more than 5,500 wholesalers carrying products under the NAKD umbrella.
Reason #3: A Clearly Undervalued Play
Valuation in the stock market can be a tricky thing. Looking at the NAKD stock chart shows a substantial loss over the past year. But that doesn’t always mean that a stock is undervalued, it could just mean that the company is crap.
In this particular case, the downward movement over the past year creates a strong opportunity to get in on an undervalued play. Think about it, the company has more than $50 million in assets but trades with a market cap of under $20 million. That’s like going to the story and buying products at more than 50% off.
Importantly, the market cap to assets isn’t the only thing that makes this stock undervalued. When you account for the strong growth that the company has seen in revenue and likely continuation of this growth, the value of the company only looks better.
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