FYI: (I agree, and would suggest you also look at their preferred stocks. Their dividend has been suspended however most of the share class are cumulative and are selling below par of $25 per share.. Pacific Gas & Electric Co. First Preferred Stock, Cumulative, par value $25 per share, redeemable without mandatory redemption provisions and redeemable anytime at the company's option at the specified redemption price plus accrued and unpaid dividends. Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. A few years ago I made ten-bagger with EIX preferred's when Edison's main holding, Southern California Edison faced bankruptcy after a state senate bill regarding financial assistance came up short)
California’s wildfire season has already arrived, bringing high temperatures, strong winds, and dry conditions.
Earlier this month, lawmakers in Sacramento scrambled to pass a bill that seeks to halt a cycle of devastating losses from fires and ballooning power-company liabilities. Much is at stake: The wildfire seasons in 2017 and 2018 were unusually severe as the two most destructive fires on record burned more than 190,000 acres, destroyed more than 20,000 structures, and killed more than 100 people.
The billions of dollars in potential legal claims against Pacific Gas & Electric prompted the Northern California utility’s parent company PG&E (ticker: PCG) to file for bankruptcy protection in January.
Getting through bankruptcy will require a balancing act among many players: company officials, politicians, consumer advocates, and investors. At the same time, it offers an opportunity for savvy individual investors with a strong stomach. If developments work in shareholders’ favor, they could see an upside of 20% or more in the company’s stock price. But they are up against—or betting along with—hedge funds and investment firms making wagers on the outcome.
Regards,
Ted
https://www.barrons.com/articles/even-in-bankruptcy-and-with-risks-pacific-gas-electrics-stock-looks-attractive-51564187315?mod=past_editionsPCG Preferred's:
http://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=PCG
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