What happened Shares of intimate apparel retailer Naked Brand Group (NASDAQ: NAKD) were up as much as 20% on Tuesday with traders from Reddit and Twitter piling into the stock. As of 3:40 p.m. EDT, shares were up 16% on the day. So what Naked Brand Group was one of the meme stocks that soared back in January along with the mania in GameStop stock. Shares shot up almost 800% year to date last winter when traders from Reddit piled into the stock. The stock subsequently crashed from its highs, but still remains up 200% this year. The current share price is $0.58, making it a penny stock. Having such a low share price is likely why the stock continues to be popular among the day-trading crowd. Image source: Getty Images. When shares shot up this winter, Naked Brand Group management took full advantage, raising $47 million in a common stock offering at $1.70 a share. The lingerie brand also divested its Bendon brick-and-mortar operations. After both transactions, Naked Brand Group had $270 million in cash on its balance sheet and no debt. The company is now solely focused on its lingerie e-commerce offering. Now what Naked Brand Group was able to nicely take advantage of the jump in its stock price back in January and February, raising $270 million in cash with the stock offering and divestiture of the Bendon brick-and-mortar operations. These moves were likely two wins for Naked Brand Group, and shareholders rightly rewarded them. However, this is still a penny stock, and a company that has never generated an annual profit since going public back in 2018. Individual investors should stay away from the company until that changes. 10 stocks we like better than Naked Brand Group Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Naked Brand Group Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Twitter. The Motley Fool has a disclosure policy.Source