XpresSpa stock
Biotech

Is XpresSpa Stock The Best COVID-19 Test Play?

The coronavirus pandemic has changed not only people’s behaviors but their investment strategies as well. We all must face the fact that we live in a different world now than we did before COVID-19. Investors must now, more than ever, take into account the macro factors when considering where to place their hard-earned dollars in their investment portfolios. We at Insider Financial understand this and why we’ve been covering the best coronavirus plays for our readers and subscribers. We were on top of Moderna, Co-DiagnosticsInovioAytu Bioscience, and CytoDyn for our readers and subscribers before their big moves. However, one name that we have yet to cover is XpresSpa Stock (NASDAQ:XSPA).

XpresSpa Stock Daily Chart

Now, we understand some of you might say how could we have missed Xpress stock? Well, to be honest, we didn’t see the model. Look at the company’s description:

XpresSpa Group, Inc., a health and wellness services company, provides spa services and related products at airports. The company offers massage services for the neck, back, feet, and whole body; nail care, including pedicures, manicures, and polish changes; travel products, such as neck pillows, blankets, and massage tools; and cryotherapy services, compression services, and personal care services, as well as retail products. As of April 6, 2020, it provided its services through 51 locations in 25 airports worldwide. The company was formerly known as FORM Holdings Corp. and changed its name to XpresSpa Group, Inc. in January 2018. XpresSpa Group, Inc. is headquartered in New York, New York.

We have been focused on COVID-19 treatments, vaccines, and testing kit providers. It wasn’t until we read yesterday’s article in Time that talked about XpresSpa that brought us into the bull camp and got us thinking about the enormous potential for XpresSpa stock. As we dived deeper, we really like what we found.

XpresSpa Stock Strategy

The company’s game plan is to provide COVID-19 screening and testing by converting select existing spa locations for this purpose on an interim basis and over time, potentially adding separate, standalone airport locations as testing sites. 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.

XpresSpa stock has a partnership with marketing agency HyperPointe to screen and test for COVID-19 in airports. Doug Satzman, XpresSpa Group CEO, said:

“We believe we have a significant role to play in the fight against COVID-19 given our airport relationships, infrastructure, workforce, and strong desire to keep travelers and the entire airport community safe. HyperPointe has been an indispensable partner in that mission. Their expertise in the healthcare space has helped us navigate the complexities of the industry, while assisting us rapidly adjust to the ever-changing environment brought on by this global pandemic.”

JFK Airport Deal

While XpresSpa has been working on its strategy since the COVID-19 pandemic struck, things didn’t become a really big deal until the company signed a deal with JFK Airport to pilot test its concept of providing diagnostic COVID-19 tests located in Terminal 4. To facilitate the JFK pilot test, the Company signed an agreement with JFKIAT for a new modular constructed testing facility within the terminal. The site hosts nine separate testing rooms with a capacity to administer over 500 tests per day. The Company intends to offer its services to airline employees, contractors and workers, concessionaires and their employees, TSA officers, and U.S. Customs and Border Protection agents.

Expansion Coming

The Company is also working closely with the Port Authority of New York and New Jersey to bring XpresCheck locations to other locations. In addition, the Company is in discussions with other U.S. airports regarding the temporary conversions of existing XpresSpa locations into XpresCheck testing sites as it looks to roll out this concept further. We are expecting deals to be announced shortly for Chicago O’Hare and Atlanta Hartsfield. These announcements will further drive XpresSpa stock higher.

The New Normal

To get the global economy back running pre-COVID, it will take lots of testing and screening. There are over 7 billion people in the world. Even if a vaccine is brought to the market, it won’t be able to reach everyone. 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. 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 XpresSpa stock.

Bottom Line

One of the key takeaways for us from the Time article is how hard CEO Doug Satzman is working to make XpresSpa stock a winner. He is at the forefront of dealing with state and federal governments to put testing protocols in place. XpresSpa has a first-mover advantage. No other company is even close to accomplishing what CEO Doug Satzman has done at XpresSpa. With over $40 million just raised, XpresSpa has the cash to become the leader when it comes to COVID-19 testing.

As always, good luck to all (except the shorts)!

We will be updating our subscribers as soon as we know more. For the latest updates on NASDAQ:XSPA, sign up today!

Disclosure: We have NO position in NASDAQ:XSPA or any of the stocks mentioned and have NOT been compensated for this article.

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Is XpresSpa Stock The Best COVID-19 Test Play?
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