XpresSpa Group Inc (NASDAQ: XSPA) is running for the top in the mid-day today. However, if you’re looking for press releases and SEC filings, you’re not going to find any. In fact, there’s no recent news at all. Nonetheless, it seems as though that a rumor is surfacing, and that’s the reason for the gains. Today, we’ll talk about:
- The rumor;
- what we’re seeing from XSPA stock as a result; and
- what we’ll be watching for ahead.
XSPA Heads Up On Rumors
As mentioned above, XpresSpa Group is having a good run in the mid-day today, but no news has been released. Nonetheless, if you look across message boards, you’ll find that a rumor is starting to surface. The rumor is that Regis Corporation is interested in acquiring the company in a transaction that will be funded via a mix of cash and stock.
While this is an interesting rumor, and it seems to be leading to quite the reaction in the market, I urge you, be careful here. The rumor seems to have surfaced on a Blogspot blog that isn’t even large enough to have its own unique domain name. There is no indication from Regis nor XSPA that there is a deal on the table.
It’s important to remember that takeover rumors are one of the most common forms of market manipulation. Considering the source of this particular rumor and the fact that there has been no indication that a takeover is actually going to take place, we believe that the rumor was created for the reason of manipulation. Once investors see that a takeover isn’t going to happen, XSPA is likely to revert back down to where it was.
What We’re Seeing From The Stock
While the rumors that XpresSpa may be taken over are unsubstantiated, they are also exciting investors. That excitement can be seen in the strong movement that we’re seeing in the value of the stock today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (2:04), XSPA is trading at $0.20 per share after a gain of $0.022 per share or 12.77% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on XSPA. In particular, we’re interested in following as the Regis acquisition rumor is debunked. Nonetheless, anything can happen in the market so we’ll be watching closely. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!