Buy, innovate, grow. That’s the credo of Vinco Ventures (NASDAQ:BBIG), and BBIG stock holders are generally betting that the company will indeed grow through a series of value-added acquisitions.
There are a number of reasons to consider Vinco now. For example, the company embarked on a recent foray into the red-hot non-fungible token market when a subsidiary pre-sold the first of three “exclusive Emmersive NFT’s” (E-NFT’s) to a private investor.
Another thing that traders like is that BBIG stock is easily affordable and can make huge price moves. But then, this is also a reason to keep one’s position size moderate.
In addition, there’s a notable acquisition in the works and positive news on the fiscal front. Clearly, there’s a lot to unpack when it comes to Vinco Ventures, so let’s venture onwards with a little bit of technical analysis.
A Closer Look at BBIG Stock
Believe it or not, you could have picked up Vinco shares in early January for just $1.25 apiece. The stock is still cheap, though not as cheap as it used to be.
We can classify BBIG stock as a penny stock, informally defined as a stock that represents a small company and trades for less than $5 per share.
That $5 level is crucial for the bulls, as it proved to be a resistance point in January of this year, and then again in June.
The January run-up was notable since it coincided with the emergence of the meme stock craze.
I can’t prove that Reddit users were responsible for that rally, but it’s certainly a possibility.
After two attempts at breaking through $5, could another price surge be right around the corner? Are the short squeezers waiting in the wings?
My crystal ball isn’t working today, but what I know for certain is that BBIG stock came down to $3.25 in mid-July and millions of shares are being traded on a daily basis.
A Tremendous Following
So yes, there is the potential for a short squeeze raid in the near future. However, long-term investors should focus on the big picture.
And the big picture looks great, with Vinco Ventures taking its “buy, innovate, grow” motto seriously.
Before going forward, let’s rewind a bit. Earlier this year, Vinco Ventures announced its plans to merge with ZASH Global Media
The latter company is led by Ted Farnsworth, the owner of an 80% stake in a TikTok rival.
More recently, Vinco revealed that the company, through its joint venture with ZASH known as ZVV Media Partners, intends to acquire Lomotif Private Limited.
Hopefully, you were able to follow all of that.
Based in Singapore, Lomotif is considered a competitor to short-video services like TikTok.
“Lomotif is a global platform with tremendous following in Asia and together with Zash it will replicate that success in the U.S. and other markets,” explained ZASH co-founder Jaeson Ma.
The Proof’s in the Results
Without a doubt, the planned Lomotif acquisition is big news for Vinco Ventures and its stakeholders.
It’s a sign that the company is, indeed, in growth mode. And if you need more evidence of this, fiscal stats are readily available.
Vinco’s most recent results cover the first quarter of 2021.
Current and prospective investors will be glad to know that the company is making significant progress.
In particular, Vinco’s first-quarter revenues totaled $2.57 million. That’s a 31.32% increase over the $1.95 million recorded for the year-ago quarter.
Furthermore, the company first-quarter gross margin was 35.54%. This signifies a 17.72% improvement compared to the year-ago period’s gross margin of 30.19%.
The Bottom Line
Okay, so BBIG stock is a penny stock. Yet, this doesn’t mean Vinco Ventures isn’t making big moves.
The planned Lomotif acquisition should add a great deal of value for Vinco’s shareholders.
And with the company moving forward on the fiscal front, Vinco Ventures remains a growth story worth watching, and investing in.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.