PG&E Corporation (NYSE: PCG) is running for the top in the market this morning, and for good reason. Recently, there were fears that the company could go into bankruptcy and that regulators just might push it there. However, on a recent investor conference call, the views changed. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about the news, what we’re seeing from PCG stock as a result and what we’ll be watching for ahead.
Regulator Does Not Want PCG To File Bankruptcy
As mentioned above, PG&E is having an incredibly strong start ot th trading session this morning. The gains come after an investor conference diluted fears of a potential bankruptcy.
It all started with a wildfire in northern California. Unfortunately, the fire destroyed the northern California town of Paridise. As the fire raged, many started to weigh in, stating that PCG could be blamed for the flames. Soon, fears that this wild fire, and regulatory fees associated with it spread, leading to concerns over bankruptcy. Nonetheless, those concerns have subsided.
On an investor’s conference call, a regulatory member of the California Public Utilities Commission took the microphone. In his statements, the regulator said that they do not want PCG to go into bankruptcy.
The call, hosted by Bank of America, included various analysts and the commissions president, Michael Picker as well as other officials from the Calfiornia Public Utilities commission.
With the threat that California Public Utilities may take action that would push PCG into bankrupcy now over, investors are cheering and the stock is making a run for the top.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of PG&E, the news proved to be overwhelmingly positive. After all, fears of bankruptcy can be damning to stock movement. However, with members of the California Public Utilities commission stating that this is not what they want, the fears are subsiding. So, it’s not surprising to see that excited investors are pushing the stock for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:03), PCG is trading at $25.74 per share after a gain of $8.00 per share or 45.10% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PCG. In particular, we’re interested in following the story surrounding the wildfire that led to all of this. While no fingers have been pointed as of yet and bankruptcy is likely off of the table, the story is still evolving. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!