We’ve been covering XpresSpa Group all summer and the bears have been saying over and over again that a vaccine was coming and testing plays were going to get destroyed. Now it is being reported that a Hong Kong man has caught COVID-19 twice this year. This disproves the vaccinators like Bill Gates who said that a vaccine would provide immunity to the coronavirus. Antibodies formed from the coronavirus only provide immunity for a few months. This means that COVID-19 treatment and testing plays are the best bets for investors. When it comes to testing, one company at the top of our list is XpresSpa Group and its airport testing business.
To get global travel moving again, travelers need to be tested upon departure and arrival. Evidence suggests that widespread testing for COVID-19 is the most critical factor in combating the virus’s spread, and a vital condition for fully reopening the economy. Airplane travel is essential for the global economy to run. We are going to see the creation of an immunity pass that confirms a passenger is clear to travel. This will require testing at departure and arrival. There’s no company better positioned to provide testing at both ends than XxpreSpa Group.
The company’s game plan is to provide COVID-19 screening and testing by converting select existing spa locations into testing sites at airports. XpresSpa’s U.S. airport real estate portfolio consists of 46 locations across 23 airports that are ready to be reactivated and redeployed in short order, subject to the approval of local airport authorities. All COVID-19 screening and testing will be conducted by a newly launched brand, XpresCheck™, which will operate under the Company’s XpresTest® subsidiary.
Testing will not only be required at airports but wherever people work or gather. Every office and employer will need XpresSpa services. This is a fact. There’s no denying it and it’s a multi-billion-dollar opportunity for XSPA stock.
Fast Covid-19 Testing
XpresSpa Group has signed a contract with Abbott Laboratories securing 100 ID NOW testing instruments. This rapid molecular testing technology has emerged as a critical part of the diagnostic landscape to help fight the pandemic by allowing fast, accurate diagnosis. This will slash the waiting time for results from 48 hours or more to under 15 minutes. Doug Satzman, XpresSpa Group CEO, said:
“These point-of-care tests are critical to enhancing early detection because of their portability, speed, and reliability which can accelerate care, reduce viral spread, and help people get on the road to recovery sooner. We’ve already identified 60 Large Hub and Medium Hub airports and are in advanced discussions to open additional locations. Our expansion plan includes offering a range of appropriate services and treatments too. We are proud to be playing our part in supporting the return of air travel to pre-pandemic levels by making sure both airport employees and travelers feel safe and confident when they come to the airport.”
Securing the use of the Abbott devices is part of XpresCheck’s strategy to deliver transformative testing and healthcare services to airports across the country. This first-mover advantage in the airport space will roll out in September at its flagship locations in JFK International Airport and Newark Liberty International Airport.
Following its successful pilot program at JFK International Airport, XpressSpa Group signed a contract with the Port Authority of New York and New Jersey to provide diagnostic COVID-19 testing at Newark Liberty International Airport through its XpresCheck brand; expected to be fully operational in the week of August 17.
It is currently building a modular constructed testing facility within Terminal B, hosting 6 separate testing rooms with a capacity to administer over 350 tests/day. Commencing Aug 10, XpressSpa will expand its testing services to the traveling public as airport traffic likely to increase in upcoming months.
The writing is on the wall when it comes to XpresSpa Group. The pilot program at JFK was a success. That is why the company is now at Newark-Liberty Airport. 60 more airports are coming. Millions of travelers are going to start flying EACH and EVERY day.
The time is coming when every single passenger will be tested. Payment for such testing will either come from traveler’s insurance, the federal government or it will become a ticket surcharge, just like checked bags.
Do the math and it’s a multi-billion-dollar opportunity. It’s easy to see now why XpresSpa Group is so undervalued, especially when you consider its current market cap is just $185 million. The bears just lost any argument they may have had.
As always, good luck to all (except the shorts)
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Disclosure: We have no position in NASDAQ:XSPA or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.