PCG

PG&E Corp

Utilities, Energy


Presented:03/05/2018
Price:$41.95
Cap:$21.74B
Current Price:$20.41
Cap:$43.63B

Presented

Date03/05/2018
Price$41.95
Market Cap$21.74B
Ent Value$42.18B
P/E Ratio13.07x
Book Value$37.34
Div Yield0%
Shares O/S518.18M
Ave Daily Vol6,687,667
Short Int1.32%

Current

Price$20.41
Market Cap$43.63B
PG&E Corp. is a holding company of PG&E Co., which engages in generation, transmission, and distribution of electricity and natural gas to customers. The company was founded in 1995 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Edison International (EIX), PG&E Corp (PCG)

Highlights

The presenter recently established a long position in PG&E Corp (PCG), following a ~40% decline since October 2017. The news flow has been decidedly negative for PG&E in the wake of the wildfires that swept Northern California in late 2017. Fears that the utility would be held liable and have to pay billions in fines caused investors to flee the stock. Then, management’s move to suspend the dividend in December drove another leg lower. However, as it stands, the risk/reward appears to be quite good with the stock in the low $40s (11x earnings). If his due diligence surrounding PG&E’s potential liabilities related to the fires is accurate, and if PG&E can resume its dividend within the investment horizon, investors could ultimately realize a 50%+ total return.

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Idea Discussion

Commentor 1 - 2 weeks ago

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