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  • Writer's pictureBig Rick Stuart

Call It A Comeback "PG&E Stock Gets Another Upgrade as Wildfire Costs Look Manageable"

I asked an investment friend about this. He said a buddy is trading it and doing well but for now (end of January 2020) he is staying away.

They still haven't restarted their dividend. That might take a while.

photo credit © BrokenSphere / Wikimedia Commons

from Barrons

PG&E (ticker: PCG), the electrical utility’s holding company, was upgraded to Buy from Neutral by Mizuho analyst Paul Fremont on Tuesday. The vote of confidence comes two weeks after a Citigroup analyst upgraded the stock. It also comes almost exactly one year after PG&E filed for bankruptcy to manage ballooning costs of the deadly wildfires caused by its equipment in 2017 and 2018.

In his note upgrading the stock, Fremont argued there is a good chance that the utility will exit bankruptcy court by the end of June.

If it does exit by June 30, any future wildfire costs should be partly covered by a state wildfire fund. A California state law known as AB-1054, passed last year, creates a $21 billion fund, financed half by residents and half by the state’s major investor-owned utilities.

from a year ago Jan. 29, 2019

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