LogFAQs > #968219570

The root of the conflict at BBIG has been Colucci (corrupt board member who made himself CEO through likely illegal means) and Philip Jones (corrupt CFO who has been trying to embezzle company funds by paying it into companies providing no value to BBIG (AIPros which appears to be a shell company that does nothing-- claims it does the same kind of stuff AdRizer was doing but it was revealed they were just trying to steal AdRizer trade secrets, and IHeartRadio which Colucci's wife works at-- probably not actually going to IHeartRadio)

BBIG developments in the past few weeks

• AI Pros payments of 5 million rescinded
• Philip Jones was found to be responsible for BBIG not negotiating their loan payment and forcing the company to pay 30 million (for stock price in the mid term I thought that was bullish, but for company health in the short term that wasn't ideal) as he did not respond to lenders nor former CEO Lisa King to get signatures to extend the loan. Amusingly some sleuthing (ie facebook stalking of his wife's facebook) found he was "on a family fishing trip" with his wife at the time
• Philip Jones stepped down as CFO due to a negotiation directly with Ted and Lisa's legal teams and replaced with Ken Slack, the CFO of Zash. This is HUGE as this was the main guy who was helping Colucci screw the company over, and the fact that he did this without consulting Colucci gives a real "time to get out of dodge" feel.
• "Special master" hearing scheduled for today designed to expedite the court proceedings a bit.

Super bullish on the Philip Jones step down-- to me that feels like the court may be winding down and it's becoming increasingly obvious that this is unwinnable. I really do think Q2/Q3 earnings are going to be great and this legal dispute being positioned just before Q2 earnings was not a coincidence. I think Philip Jones

Right now the objectives are:

Get Colucci out
Get Independent Board members in
Get earnings
Get merger

I believe the resolution of the court case will accomplish the first two items, and the merger/earnings will occur shortly after the court case.

Bear case is of course that the court case stalls long enough that the company has Nasdaq compliance issues, but the judge seems to be prioritizing moving things along quickly first and foremost so it's hard to imagine this lasting much longer. I do not think bankruptcy is a real risk here-- Zash has solid financials and this ticker will be a gold mine for them if they get that merger so I think they'll keep BBIG afloat-- I also think BBIG's financial situation is being exaggerated by Colucci to help generate FUD as there is a short hedge fund in a bad place here that has connections with Colucci and some other guy on the board whose name I forget as per the whistleblower testimony from Eric Noble

I've been positioning any calls with longer durations and have been going harder on shares, so I'm pretty ok with waiting this out. Every month I accumulate more.

I do also have some Intel 2025 30c. Hard to not see that being an easy 5 bagger+ when the stock market stabilizes and Intel's chip manufacturing kicks up in 2024