You are not alone in wondering who and what Vinco Ventures, Inc (NASDAQ: BBIG) is. This company is a small penny-stock brand, and the latest financial report was not awesome, although there is a significant opportunity in this stock. Regarding the results, the company reported an increase in assets but ongoing losses related to the business.
The business is to invest using the B.I.G. strategy or Buy. Innovate. Grow. The company’s business investments include a variety of small but growing businesses, which is where the opportunity lies.
Vinco Ventures lists a 50% ownership in ZVV on its financial statement. ZVV owns an 80% stake in Lomotiff, which owns a 100% stake in its underlying business, Lomotiff. Lomotiff is a creator app allowing creators to make intricate videos using mobile devices. Sound familiar? It should; TikTok is making billions with this technology, and guess what? The US government could ban Tik Tok from doing business in the US. Who’s ready to step into the void? Vinco Ventures and Locomotiff. TikTok’s business is estimated to be over $65 billion, a significant opportunity.
“Vinco Venture’s Lomotif platform stands ready to step up and fill the void created by a potential TikTok ban. Lomotif is a mobile social media and video editing app with a simple and user-friendly interface that makes it easy for anyone to create professional-looking videos using their smartphone. It is designed for short videos, making it perfect for social media content creators who want to create engaging videos quickly.
In addition, Lomotif makes it easy to share videos on social media platforms and is free to download and use. Most important, Lomotif is owned by a public company in the USA.”
The Battle Lines Are Drawn, Bulls And Bears Take Sides On Vinco Ventures
A quick look at the sell-side data will show that interest is heating up on both sides. The institutions own about 20% of the stock, which is a fair amount given the company’s minute stature, and they have been increasing their holdings over the last year. Recent buyers include AllianceBernstein, Millennium Management, Morgan Stanley, JPMorgan, and Barclays so holders are diverse and influential.
The short-sellers are also stepping up, short interest is running near 13%, and the latest look at Fintel.io data showed 64% of the off-exchange/dark pool volume was short-selling. This has the stock set up for volatility if forthcoming news will drive nothing else.
Vinco Ventures Gets Notice Of Noncompliance
Vinco Ventures is not without risks. The company has a history of failing to meet deadlines and has received several noncompliance notices. The latest was failing to file Q2 results, which was rectified a day later. The company’s CEO and c-suite team left the business in December 2022 following what appears to be a contentious transition, so it is operating with an interim CEO.
The board chairman is filling the role for now, and it is unclear who will assume the mantle of responsibility. On top of this, the stock is trading below the $1 threshold required for a NASDAQ listing.
The Technical Outlook: BBIG Is Trending Lower
Shares of BBIG are trending lower, and that does not look like it will end soon; if it does, no strong rally will form without a ban on TikTok. TikTok has captured that market; until it doesn’t, Vinco Ventures is a high-risk penny stock with some intriguing but unprofitable brands.