Shorting NAKD - Naked Brands

[SBQ]

As some may know, there's news that on the NZ shores, a bit of GME action has happened -> NAKD. A brief profile:

Its Brands include Naked, Bendon, Bendon Man, Davenport, Evollove, Fayreform, Hickory, Lovable, Pleasure State, Heidi Klum Intimates, Heidi Klum Man, and Heidi Klum Swim. The Company’s products are available in over 44 countries worldwide through around 6,000 retail doors. The Company’s brands are distributed through department stores, specialty stores, independent boutiques and third-party e-commerce sites globally, including Macy’s, Nordstrom, Saks Fifth Avenue, Harrods, Selfridges, and Amazon.

I'm not a customer of those brands, I don't know anyone that shops at theses places here in NZ. My concern is what is the viability of this business model in NZ?

Recent news shows the company has been busy floating more shares. Today or soon tomorrow $1.70/share, for gross proceeds of ~$50M. It seems no end to this kind of dilution.

https://seekingalpha.com/news/3655335-naked-brand-to-raise-50m-through-share-sale

and some people find the new share issue positive:

https://www.reddit.com/r/nakd/comments/l8y1s0/naked_brand_group_announces_pricing_of_50_million/

So what are your comments? To me I think this stock is a great short long term.

[stoploss]

As some may know, there's news that on the NZ shores, a bit of GME action has happened -> NAKD. A brief profile:

Its Brands include Naked, Bendon, Bendon Man, Davenport, Evollove, Fayreform, Hickory, Lovable, Pleasure State, Heidi Klum Intimates, Heidi Klum Man, and Heidi Klum Swim. The Company’s products are available in over 44 countries worldwide through around 6,000 retail doors. The Company’s brands are distributed through department stores, specialty stores, independent boutiques and third-party e-commerce sites globally, including Macy’s, Nordstrom, Saks Fifth Avenue, Harrods, Selfridges, and Amazon.

I'm not a customer of those brands, I don't know anyone that shops at theses places here in NZ. My concern is what is the viability of this business model in NZ?

Recent news shows the company has been busy floating more shares. Today or soon tomorrow $1.70/share, for gross proceeds of ~$50M. It seems no end to this kind of dilution.

https://seekingalpha.com/news/3655335-naked-brand-to-raise-50m-through-share-sale

and some people find the new share issue positive:

https://www.reddit.com/r/nakd/comments/l8y1s0/naked_brand_group_announces_pricing_of_50_million/

So what are your comments? To me I think this stock is a great short long term.
Look at the major person behind it , think it has been reasonably volatile . I agree with your sentiment ,However I wouldn’t go anywhere near this long or short .
https://www.google.co.nz/amp/s/investorplace.com/2020/11/dont-lose-your-shirt-with-naked-brand-group-nakd-stock/amp/

[SBQ]

Well it seems I tried. In all hours of pre-market / main market / after hours trade today my broker TDA rejected my short position order. Cash in account so I was not going on margin. I suspect pretty much all the major brokers had no inventory of NAKD shares to allow for clients to go short.

In early morning trade, NAKD peak at $1.90 and for most of general trading hours it hovered around $1.50 range to a low of $1.33. Currently in after hours its around $1.43.

I wonder who are those investors that participated in the new share offering at a $1.70 price tag??? A 15+% premium of what one can buy on the open market.