PG&E’s shares are plunging because it could potentially have huge liabilities from California’s Camp Fire. Bankruptcy is a real danger. From Leonard Hyman and William Tilles at wolfstreet.com:
For investors there is little clarity through the smoke and haze.
The common shares of Pacific Gas & Electric [PCG] plunged nearly 22% to $25.59 on Wednesday and are now down 47% since November 8, when the “Camp Fire” began near the city of Paradise, Butte County, in Northern California.
This repeats and continues a scenario that commenced in the fall of 2017, with the wildfires that ravaged parts of the countries of Sonoma and Napa, north of San Francisco. At the time, the shares plunged from around $70 on October 11 to about $38 by February 8. Then they recovered some until the next fire hit (data via YCharts):
