New data has surfaced pointing towards the possibility of a BBIG short squeeze; Fintel is giving Vinco Ventures a 92% chance of squeezing.
Disclaimer: this is not a ‘buy’ recommendation but rather an informative piece of news-related content highlighting the latest data reported by third parties related to Vinco Ventures (NASDAQ:BBIG) stock.
BBIG’s short interest has been rising, currently nearing 19% (updated daily here).
AMC’s short interest was only at 22% when it began to squeeze short sellers from their positions in 2021.
Shares rose from $9 and $14 per share to the company’s all-time high of $72 per share.
During this climb, AMC’s short interest came down to 14% before ultimately rising to its current levels today.
Fintel is also giving BBIG stock a short squeeze score of 92 of 100, per IP.
“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.
Numbers range from 0 to 100, with higher numbers indicating a higher risk of a short squeeze relative to its peers, and 50 being the average,” says Fintel.
However, a BBIG short squeeze would also require massive momentum, as seen with AMC and GameStop in the past.
The company certainly has the short interest to send shares up, but big buying pressure will be key if investors are to set off a chain reaction of short sellers closing.
Is a BBIG Short Squeeze Likely?
A BBIG short squeeze becomes more probable as more and more investors begin to purchase the stock.
At the time being, we’re seeing there is very low volume going into BBIG stock, especially after its recent 1-for-20 reverse stock split.
Investors will need to see big volume for BBIG stock to squeeze.
For example, when AMC hit its all-time high in June of 2021, daily trading volume was between 500 million and 1 billion; that’s a lot of liquidity.
The next big short squeeze stock will be the one that has the most investors dropping liquidity bombs into the play.
Vinco Ventures has a great community of investors; however, company executives seem to have tarnished confidence with most shareholders.
Investors raised more than $42K to fight the board in court in an attempt to stop the reverse stock split and dilution from occurring.
BBIG investors believe that the company is failing everyday shareholders and must be held accountable for the significant losses seen in the market.
Many of which allege fraud could be at play here.
The matter is serious, but liquidity is running dry in many retail communities as stocks like BBIG have fallen more than 75% this year-to-date.
Do BBIG shareholders deserve a short squeeze? Absolutely.
Is a short squeeze in BBIG stock likely? Time will certainly tell.
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