The company was incorporated on July 18 2017 under the name of Idea Lab X Products. Vinco Ventures, Inc. entered a merger agreement with the company on November 5, 2020. Under the agreement, the company merged into the Parent and became Vinco Ventures Inc.
Vinco Ventures, Inc. seeks to be involved with every step of the consumer product life cycle - from ideation, to research and development, manufacturing, sales, packaging and fulfillment.
Vinco Ventures, Inc. leverages the new market opportunity by utilizing their B.I.G. Strategy: Buy. Innovate. Grow.
- 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 growth of our acquired brands to reach their target numbers quicker.
- On October 19, 2021, when the news of corporate level changes at Vinco Ventures were announced, retail investors sold off their stocks. The stock is heavily shorted right now, given $BBIG volatility and scepticism around disruptive tech that Vinco Ventures is involved in. Latest short volume of $BBIG is 22,820,000 shares, from 30th Sept 2021- 6.9% higher than short volume from 15th October 2021.
- The company entered the NFT sphere (non-fungible token) recently, which is quickly gaining popularity among young investors. This indirectly exposes Vinco Ventures to the Ethereum blockchain and $BBIG has been benefiting from good performance of Ethereum.
- NFT prevents record labels and intermediaries from taking away a significant amount of artists' revenues. It allows artists to sell their creations through a disruptive model. In addition to disruption, $BBIG can benefit from the combination of NFT and Lomotif by appealing to the loyal market base.
- Short squeeze/meme stock movement More folks are jumping on the bandwagon and fighting against the hedgies. The movement is real. The more we unite the worse we make it for MM to manipulate the rigged stock market. We believe that it is an incomplete bullish sequence right now, and further upside is favoured to take place.
- Vinco Ventures has a very good shot at leveraging Lomotif to grow its customer base. It is likely that Lomotif will see explosive growth. The growth in India is more plausible given the TikTok ban in the country, but Paul(CEO) is primarily focused on growing in America.
- Products Vinco Ventures is involved with are appealing for the same customer base- young investors who are excited by disruptive technologies. Thus customer acquisition is relatively easier and cheaper for the company.
Entrepreneur and C-suite marketing and branding executive, Lisa has spent her career building teams from the ground up and developing people. She has a proven track record of helping businesses grow. At Galyan's Sports & Outdoor Adventure, Lisa was on the executive leadership team that took the company public and during that time, more than doubled the company's footprint across the nation. Lisa's knowledge of business, professional branding, strengths and leadership development has helped businesses grow and leaders perform at their best
We are using below listed companies as competitors to perform comps analysis.
- DRIVE SHACK INC($DS): Drive Shack Inc. owns and operates golf-related leisure and entertainment venue business. It operates through Entertainment Golf Venues and Traditional Golf Properties segments.
- TOWN SPORTS INTERNATIONAL($CLUBQ): Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States.
- FUNKO INC($FNKO): Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally.
- Mattel Inc($MAT): Mattel, Inc., a children's entertainment company, designs and produces toys and consumer products worldwide.
- Hasbro Inc.($HAS): Hasbro, Inc., together with its subsidiaries, operates as a play and entertainment company. The company's Entertainment, Licensing and Digital segment engages in consumer products licensing, digital gaming, Hasbro legacy movie, and television entertainment operations.
BBIG had negative Earnings in 2017, 2018 and 2020, so comps analysis on standard P/E will not be insightful.
Peer analysis with comparable companies based on P/S multiple suggests that BBIG stock is overvalued. BBIG's fair value by P/S analysis comes to $0.15 to $0.3 per share.
By comparing BBIG's EV/Sales multiple to that of competitors, fair value for the BBIG stock comes between $1.01 to $1.27 per share.
In this particular case, DCF would not provide relevant results for the valuation because Vinco Ventures has not been generating revenues in line with the competition. The value of the $BBIG is derived from the disruption and innovation it is bringing to the table, not the free cash flows it generates.
Vinco Ventures is currently facing significant amount of risk:
- $BBIG is priced at $5.38 currently owing to the disruption it is bringing to the market and sailing on popularity gained from being associated with the buzzwords- Crypto, NFT and blockchain.
- The company is heavily exposed to the NFT market, which is an unexplored territory. Investors are already sceptical of the growth opportunities in NFT.
- It has not generated revenues to account for $BBIG worth $5.38.
- The intrinsic value and value according to fundamental analysis would come down between $1.02 and $1.27.
- Lomotif is a very small company with 30 million (monthly active users) MAU as opposed to TikTok with 600 million MAU. Aiming to compete with TikTok at this stage is ambitious to say the least.
$BBIG Stock Analysis Summary:
In summary, we can say that although the technical valuation of Vinco Ventures is not able to justify the $5.38 per share, and although it has revenues below par as compared to the competitors, $BBIG is a good candidate for a short-term investment. The reasoning here is that there is an incomplete bullish sequence right now, and further upside is favoured to take place. The shares of Vinco Ventures are heavily shorted at the moment owing to news of Vinco merging with Zash and changes in management. Thus short-term investors could potentially benefit from a short-squeeze.