XPG Continues to Edge Higher despite the Level 3 Trading Alert

The share price of Xspring Capital Public Company Limited (XPG) rose ฿1.00/share or 14.08% to close at ฿8.10/share on May 27, 2021, with a trading value of 405 million baht, even with an imposition of trading alert level 3 from the Stock Exchange of Thailand.

 

XPG, formerly known as a brokerage company named “Seamico Capital Public Company Limited”, has been on a radar of investors and the Thai stock exchange for a while due to a sudden surge in share price since the appointment of Mr. Rathian Srimongkol from Krungthai Card Public Company Limited (KTC) as a Chairman of the company, who was once able to dig KTC out of the bottom.

 

Some speculated that the connection between these two companies might become XPG’s other business, which is an asset management company (AMC). The business could synergize with KTC that has 1) credit loan, 2) personal loan, 3) car-title loan and 4) leasing business.

KTC has a leasing business that is a secured loan, whereas bad debt can be managed by XPG. XPG would have a bigger portfolio, while KTC would solve its non-performing loans as the company does not have debt collection and the license.

The two businesses could go along well while the main driver would be Mr. Rathian Srimongkol himself.

Currently, XPG has stated itself as a company that invests in other potential businesses. The securities received a level 3 trading alert from the Stock Exchange of Thailand (SET) as the criteria such as turnover ratio, the trading value and the price not corresponding with the fundamental factors such as P/E ratio, etc.

The level 3 trading alert will prohibit net settlement, meaning that the member must not offset the trading value of buy amount and sell amount of a certain security on a given day. (The amount received from sale of the particular security will be credited back on the following day.)