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Started By
Message
Will PG&E (Pacific Gas and Electric) go out of business?
Posted on 1/21/19 at 10:17 pm
Posted on 1/21/19 at 10:17 pm
I'm thinking of grabbing their stock at $7, down from almost $50 just in November.
They are essentially twice as big as Entergy, and set to incur a huge liability with all the wildfires that occurred the past 6 months. The CEO stepped down, and they announced that they will be filing bankruptcy in the next couple weeks.
I'm thinking that this is one of those "too big to fail" situations, and the major reason for the sell off is institutional based holdings (teachers union, nurses union, 'safe' mutual funds, etc) that are tasked with holding "safe" investments. Being that PG&E suffered a major downgrade due to liabilities, all the institutional investors had to pull the sell trigger, which caused the stock to plummet.
However, I have been out of the game for a while, and would like someone more in the know about PG&E to inform me as to why a 114 year old company, employing 23,000 people, and serving the 45% of California (Northern California) will go out of business and a $7/share will be 0.
They are essentially twice as big as Entergy, and set to incur a huge liability with all the wildfires that occurred the past 6 months. The CEO stepped down, and they announced that they will be filing bankruptcy in the next couple weeks.
I'm thinking that this is one of those "too big to fail" situations, and the major reason for the sell off is institutional based holdings (teachers union, nurses union, 'safe' mutual funds, etc) that are tasked with holding "safe" investments. Being that PG&E suffered a major downgrade due to liabilities, all the institutional investors had to pull the sell trigger, which caused the stock to plummet.
However, I have been out of the game for a while, and would like someone more in the know about PG&E to inform me as to why a 114 year old company, employing 23,000 people, and serving the 45% of California (Northern California) will go out of business and a $7/share will be 0.
7
Posted on 1/21/19 at 10:27 pm to Kujo
quote:No. But bankruptcy is very possible.
Will PG&E (Pacific Gas and Electric) go out of business?
Eta: I just re-read your post and realized you believe bankruptcy = “going out of business.” It doesn’t.
This post was edited on 1/21/19 at 10:33 pm
Posted on 1/21/19 at 10:34 pm to LSURussian
quote:
No. But bankruptcy is very possible.
Stock value in 5 years?
Posted on 1/21/19 at 10:42 pm to Kujo
quote:When a company declares bankruptcy the existing stockholders usually lose all of their investment and the creditors are given ownership of the company in compensation for having their loans to the company forgiven or greatly reduced.
Stock value in 5 years?
So, to answer your question, existing shareholders value of their current shares = ZERO. Or maybe pennies/share so they can sell their shares for a tax loss.
Posted on 1/22/19 at 1:19 am to Kujo
I think any company would be crazy to buy PG&Es assets knowing the fire risk. I think CA would be equally as crazy to take on ownership.
Thus, I think it is in everyone’s interest to work out a deal that keeps PG&E in operation and working towards fire prevention. Bankruptcy is almost certain but I think PG&E can survive in the long run at the cost of the CA taxpayer
Thus, I think it is in everyone’s interest to work out a deal that keeps PG&E in operation and working towards fire prevention. Bankruptcy is almost certain but I think PG&E can survive in the long run at the cost of the CA taxpayer
This post was edited on 1/22/19 at 1:20 am
Posted on 1/22/19 at 7:31 am to hiltacular
Exactly, they are a utility company. They can’t just go out of business until there is someone else to take over their business. I haven’t been following it, it’s certainly a risky play.
But the little I have seen shows that they will likely owe billions more than they will have with no known recourse.
I feel like Cali will probably Cali here and save them.
But the little I have seen shows that they will likely owe billions more than they will have with no known recourse.
I feel like Cali will probably Cali here and save them.
Posted on 1/22/19 at 7:34 am to Kujo
quote:
I'm thinking of grabbing their stock at $7, down from almost $50 just in November.
Don't fool with this unless you really know what you are doing (and given your post, it sounds like you don't). There is probably going to be a bankruptcy filing. The company will eventually emerge from that and, but only after a lot of rights and obligations on the part of a lot of people are changed. Creditors and bondholders will almost certainly take haircuts, and shareholders are going to come out the worst. You could get zeroed out.
Posted on 1/22/19 at 8:02 am to Kujo
Do you see that drop to $17 and that drop to $9?
Well I considered getting in at each price point. Glad I didn’t seeing it went down to $6. I would have lost 33~66%!
Is $6-7 as low as it goes? Hard to tell. Probably best to avoid investing in a company about to enter bankruptcy protection.
Well I considered getting in at each price point. Glad I didn’t seeing it went down to $6. I would have lost 33~66%!
Is $6-7 as low as it goes? Hard to tell. Probably best to avoid investing in a company about to enter bankruptcy protection.
This post was edited on 1/22/19 at 8:03 am
Posted on 1/24/19 at 2:30 pm to TDFreak
Well they just stopped trading after the anouncement. Congrats to those who had the chutzpah to go for it.
Posted on 1/24/19 at 3:48 pm to NOFOX
Posted on 1/24/19 at 4:35 pm to leoj
Any news that removes them from fault is going to be a windfall. Congrats buyers! Knowing my luck, I would have bought in at $17 and still have been underwater.
Whoever bought 10k in call options the day before this announcement is about to be investigated six ways to Sunday!
Whoever bought 10k in call options the day before this announcement is about to be investigated six ways to Sunday!
Posted on 1/24/19 at 5:13 pm to TDFreak
The only problem is the presiding judge in the previous fire, which they are responsible for, wanted them to remedy the situation by removing all hazards that would could cause another wildfire.
PG&E filed paperwork with the court yesterday that it would cost the company and California taxpayers $150 Billion.
PG&E filed paperwork with the court yesterday that it would cost the company and California taxpayers $150 Billion.
Posted on 1/25/19 at 2:12 pm to TigerintheNO
well frick me, i didn't do it because i thought i was stupid.
i hate that im always swayed by the more confident opinion
i hate that im always swayed by the more confident opinion
Posted on 1/29/19 at 8:45 am to Kujo
quote:
The Pacific Gas and Electric board of directors voted Monday evening to file for Chapter 11 bankruptcy protection. PG&E said it would officially file at midnight Tuesday.
Posted on 1/29/19 at 11:06 am to TigerintheNO
i can't figure out how their stock goes up 13% the day they officially declare chapt 11.... ????
shouldn't it have the opposite effect?
shouldn't it have the opposite effect?
Posted on 2/7/19 at 4:54 pm to TexasTiger34
quote:
14.06 USD +0.39 (2.85%)
Closed: Feb 7, 5:11 PM EST · Disclaimer
After hours 13.96 -0.10 (0.71%)
Posted on 2/7/19 at 10:18 pm to Kujo
If you want to roll the dice, look up a company about to report earnings, buy their stock, and if they beat, you might have a 5% return (or more) in a single day.
I was following PAYC for a month. Rose the entire time. They shot up an extra 10% after earnings call.
Believe me, much better to avoid a bankrupt company. I would still be underwater on PCG if I bought on the first drop down to $17. Not worth the risk.
I was following PAYC for a month. Rose the entire time. They shot up an extra 10% after earnings call.
Believe me, much better to avoid a bankrupt company. I would still be underwater on PCG if I bought on the first drop down to $17. Not worth the risk.
Posted on 2/8/19 at 1:08 pm to Kujo
They will not go out of business but can go bankrupt...sell all there assets and your shares be worthless....always a risk
Posted on 5/3/19 at 4:19 pm to Tigers4life
quote:
21.49 USD +0.53 (2.53%)
Posted on 5/3/19 at 4:57 pm to Kujo
Did you get in at $7?
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