XpresSpa (XSPA) Stock Heads Up As It Makes The Threshold Shorting List

XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) is heading up in the market this morning, trading on gains of around 4% in the premarket hours. However, if you’re looking for press releases or SEC filings, you’re out of luck. The company hasn’t issued any. Noentheless, there’s a good reason to be excited here.

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XSPA Stock Makes It To The Threshold Shorting List

As mentioned above, XpresSpa is heading up, but no news has been released. So, what’s the deal? Well, at least part of the excitement likely stems from the fact that the stock has been added to the SEC’s Threshold Shorting List.

The Threshold Shorting List was developed by the SEC in an effort to reduce naked short selling practices. Essentially, this is when shares are shorted that a trader doesn’t actually own. Therefore, associated transactions fail to clear. By tracking the amounts of these transactions, the SEC can get an idea of the amount of naked shorting taking place in any particular equity.

So, how is being on this list a good thing? Well, if there is naked shorting, there’s a lot of shorting. Being on this list alone will scare many naked shorts into getting out of their positions. This often triggers a short squeeze, which is an event that could send XSPA on a serious run for the top.

The Stock Presents A Strong Opportunity

Beyond the potential for a short squeeze, there’s good reason to be excited about XSPA Stock. The company’s claim to fame is spas that are located within airports. These spas allow travelers to get a feeling of comfort while waiting on a flight or just after arriving to their destination.

However, with the COVID-19 pandemic, spas are not considered essential services. Nonetheless, the company figured out a valuable use for its real estate within airports.

XpresSpa knows that for life to make it back to how it was before the pandemic, testing is going to play a key role. Of course, travelers will need to be tested when traveling to and from high-risk areas, and early on, the demand for the testing of travelers is likely to be high.

As such, XSPA is temporarily restructuring its real estate in these airports to turn these areas into testing facilities. In my opinion, this is a very strong move that warrants attention for the stock with or without the Threshold Shorting List.

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