Xurpas plummets on first day of trading after 15 month suspension
To nobody’s surprise, Xurpas [X 0.47 13.64%] had a rough day yesterday, starting in the red, and ending deeper in the red, as shareholders looked to offload shares of the wayward technology company that had been trapped in the suspended stock for almost 2 years.
The company claims to have made significant strides in growing a segment of its business related to its “IT Staff Augmentation” software/service, but it’s nothing like the technology company that it was back in 2017 when it was trading at P10.48/share and doing business with the big telcos.
Since then, the stock has steadily shed over 95% of its value, so that’s why it was surprising at all when X resumed that long-term slide after being out of commission for so long.
MB BOTTOM-LINE
Like I mentioned in a previous post, I’m not writing the company off. There’s plenty of space in our economy for a technology company to make a service layer of software that helps any one of the booming internet-related business sectors, like BPOs, or even POGOs.
Well, maybe the POGO ship has sailed, but the gaming world’s desire to push gambling online is as strong as ever.
I don’t have any industry-specific knowledge to know if these sectors are a good fit for what X does, or could do, and frankly, I don’t really have a great incentive to find out.
It’s not clear to me what exactly X does to earn the revenue that it’s generating, and it’s not clear to me what it plans to do to grow that revenue.
I also struggle, mightily, with the thought of putting money into a company that was so comfortable being suspended for such a long time. Was X just waiting for somebody to notice that it failed to complete the backdoor listing with Wavemaker US?
That deal was why it was suspended in the first place, back in September of 2020, but that deal died just 3 months later in December of 2020 when the deadline for moving forward was breached.
Why just sit, suspended, for an entire year? It feels like there’s so much more to this story that we don’t know, and until I know more, that’s enough of a red flag for me to look elsewhere.
--
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
- Latest
