Kalera Public Limited (NASDAQ: KAL) is an American vertical farming company that has suddenly been growing interest in the market as of late. Its impressive price climb is a testament to the fact that market bulls are confident about the roadmap the management has laid out for 2023, and wider ambitions.
KAL's Rise, Fall, and Fightback
On Friday short-position holders, who collectively reflect almost 8% of the float of Kalera Public Limited (KAL), arrived at the edge after the stock saw a sudden rise in its price. KAL shot up and more than doubled from its price of $5.70 to a high peak of $13.30. However, KAL short-holders breathed a sigh of relief, as the day closed with the stock coming down to a humble $6.75. Just when the market thought KAL was done with its action, it spurred into motion all through the weekend, and continued its epic climb through the pre-market hours on Monday, pricing it back at almost $11. This gain may see an exponential rise as trade sets off for the day.
Noteworthy Cost-Cutting Measures
The initial trigger for KAL's share jump comes after the management announced its strategic guidelines for 2023, which involves a comprehensive cost-cutting initiative. As per the comments of the management, Kalera will achieve to reduce its costs by a whopping 75% by the year's end. To do this, the company will immediately be halting its operations at its farms in Atlanta and Orlando, reducing costs by $5 million a year. Instead, its focus will be on running its Denver and Houston sites at full capacity, to achieve economic optimization.
Conclusion
KAL stock has been seeing a price surge throughout the weekend, as the market responds optimistically to the company's strategic shift. Therefore, the price gain has been threatening all short-holders of KAL, which may continue to see a squeeze out throughout the week.