Why Were Investors Buying Vinco Ventures Last Week?

May 9, 2022

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By Fintel. Originally published at ValueWalk.

Vinco Ventures Inc (NASDAQ:BBIG) hit our radar last week on the Fintel Retail Fund Flows leaderboard as the stock was the 10th most bought security. We decided to take a closer look into the stock as it is now the 8th most held security on the platform, rising 4 places.

Vinco Ventures is a company that focuses on the development of digital media and content technologies. The firm leverages new market opportunities by utilizing the B.I.G. Strategy to Buy, Innovate and Grow. We have included the BBIG’s philosophy below:

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Buy – Acquisitions is our model. We will seek to acquire significant brands to continue to add to the Portfolio.
Innovate – Leverage the internal traffic platforms of Honey Badger and Social Pulse Media, our brands are able to quickly innovate and determine the highest conversion traffic and target accordingly. Once identified, we scale while maintaining conversions for success.
Grow – More targeted traffic equals more conversions. With our internal engines, we are able to expedite the growth of our acquired brands to reach their target numbers quicker.

BBIG’s shares have been volatile over the last year with the stock trading as high as $12.49 and as low as $1.94 with various spikes on the way. Since the beginning of 2022, shares have mounted a +26.5% gain and are up +46.9% on the latest run that began on the 26th of April.

Vinco reported full year results in mid-April that saw a wider year-on-year loss with revenue of $9.8 million falling from $12.0 million in the prior year. BBIG stated in the report that at the end of 2021 they held $187.6 million in cash and cash equivalents on the balance sheet.

On the 5th of May, Vinco set the record and distribution date for the much anticipated planned business separation of Cryptyde. The record date for the spin-off will be the 18th of May and each shareholder will receive 1 Cyptyde share for every 10 shares of Vinco common stock held. They expect Vinco shareholders to receive the share dividend around the 27th of May and for the new TYDE shares to be listed on the Nasdaq once completed.

For those of you who are not aware, Cryptide is a blockchain technology company that is focused on cryptocurrency and non-fungible tokens (NFT’s). The CEO of Cryptyde Brian McFadden said he was excited about the spin-off as it would allow the subsidiary to scale its business model that does not hurt shareholder value.

BBIG shares could see buying activity increase until the proposed record date, although holders should beware that Vinco shares will likely retrace once the date has passed.

We noticed that Institutional Ownership has risen significantly in BBIG following the initial Form 10 registration filing where the company first announced spin-off plans for the Cryptyde subsidiary. Vinco Ventures Inc (US:BBIG) has 122 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC) and hold 16.56 million shares. We included a chart below that illustrates this.

Vinco Ventures also has a Fintel Gamma Squeeze Score of 97.33 and a Short Squeeze Score of 97.06 that ranks it almost at the top of each leaderboard. BBIG also has 15.47% of its float currently shorted according to the Nasdaq and Capital IQ. The Short Squeeze Score is the result of a sophisticated, multi-factor quantitative model that identifies companies that have the highest risk of experiencing a short squeeze. The scoring model uses a combination of short interest, float, short borrow fee rates, and other metrics. The number ranges from 0 to 100, with higher numbers indicating a higher risk of a short squeeze relative to its peers, and 50 being the average.

Just as a reference point, we included the Fintel Retail Ownership activity chart that shows the level of interest in the stock has remained high over the last 6 months among investors. The Fintel Retail Ownership dataset is created from a large panel of users who share their holdings and transactions with Fintel by linking their broker accounts. The data from these accounts are tracked, aggregated, and published here. We do not share this data with anybody else. Join the panel and receive immediate benefits!