As one of the most confusing ventures I’ve covered, Vinco Ventures (NASDAQ:BBIG) doesn’t excite me. The only reason I’m talking about it today is what I would term the Kevin Hart effect: I just can’t say “no”. In other words, BBIG stock is hot stuff (for some reason) and thus it’s constantly plopped onto my desk.
The day Vinco no longer justifies any attention couldn’t come soon enough. That’s not to disparage BBIG stock. Rather, I know that you’re tired of reading about the latest negative take on the oddball entity. Believe me, I don’t want to write these words anymore than you want to read them.
Still, it pays the bills, so let’s just get this one over with, shall we?
Without diving into any specifics, the biggest obstacle that the bulls face regarding BBIG stock is that very few fundamental catalysts have proven to be sticky enough to warrant anything other than a speculative gamble. For instance, on a year-to-date basis, Vinco’s loss of 21.5% is slightly worse than the volatile Nasdaq Composite index.
Moreover, no matter how you break it down, BBIG stock is disturbingly negative. As I write this following the close of the March 14 session, below are the key performance stats:
- Trailing-day performance: a loss of 5%
- Trailing-week performance: a loss of 1.5%
- Trailing-month performance: a loss of 42%
- Trailing-six-month performance: a loss of 75%
- Trailing-year performance: a loss of 29%
- “Lifetime” performance: a loss of 64%
Are you seeing a pattern? While performance stats can be terribly arbitrary, you’d think that a reasonably viable stock would have a positive showing somewhere. Again, as of March 14, there is no good news to be had on the charts.
Look at Day Trading if You Like BBIG Stock
Given the growth of the InvestorPlace platform, I’m not even going to pretend to know what all my colleagues think about BBIG stock. However, from past recollection, I cannot remember anybody having a decisively positive take on Vinco Ventures.
It’s an anecdotal observation, of course. Still, I wouldn’t ignore this observation outright. When you can’t even remember anybody supporting a particular security, that tells you what you’re dealing with regarding BBIG stock.
Still, if I had to pick one reason to even put this on my radar, it’s the volatility. If you’re a professional day trader, BBIG stock might be attractive.
Primarily, this is because there’s never a dull moment with trading Vinco. As I mentioned earlier, the broader profile of the security is overwhelmingly negative. So, you can take some short bets and possibly accrue some “easy” money — I’m just speaking in terms of probabilities, there’s nothing easy about shorting stocks — with BBIG.
However, every once in a while, shares skyrocket to the moon. I’m not privy to all that causes such rumblings. Actually, I’m not privy to any causal factor for any rumblings, positive or negative. But if you are, you can do the ol’ switch-a-roo and go long when you’re feeling lucky.
You probably wouldn’t have so many ample opportunities to skin the cat seven ways to Sunday with any other equity. But with BBIG stock, you’re only limited by your courage.
Oh, and possibly an investigation by the Securities and Exchange Commission. Here’s some harsh reality. Apparently, 90% of people lose money investing in stocks. Now imagine what the long-term success rate would be for penny stocks.
I’d say very minimal. Thus, you might attract unwanted attention for your improbable success in BBIG stock.
No Compelling Reason to Invest
My colleague Will Ashworth made an excellent point about Vinco. While there might be well-capitalized entities willing to take a risk on BBIG stock, the reality is such firms can absorb the risk. To them, this speculation is just a drop in the bucket.
But seeing how people gamble during the new normal, it’s very possible that you as an individual cannot afford to go all-in on BBIG stock. Forgive me for saying this but I think it would be stupid to go all-in on Vinco. It’s far too risky to be anything other than entertainment, an online alternative to going to Las Vegas.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.