Will PCG pop soon?

Discussion in 'Stocks' started by jeffbader, Sep 18, 2019.

  1. jeffbader

    jeffbader

    I think PCG is going to jump up to $14 soon (bull flag today on the 60-min), but I don't know enough about big-time litigation to understand the fundamental implications of their liability in the fires. For example, could more civil suits be announced that drives it back down to $5?

    Regardless, I'm very long biased on PCG and I'd love your thoughts. If it rallies to $14, what's stopping it from picking up where it left off a year ago at $45? I prefer intraday positions over swing, but this stock has me second-guessing my preference.
     
  2. Nobert

    Nobert

    That monstrous vol candle in January & 2001 lows, - at $5/6, it was a beautiful moment for loooong in it :)

    Now - is it worth it...

    There's plenty of choices around, with less risk.
     
  3. newwurldmn

    newwurldmn

    The fact that the company has declared bankruptcy and has tens of billions of dollars of liabilities from the CA wildfires a few years ago.

    Didn’t your technical charts tell you that?
     
    jeffbader likes this.
  4. jeffbader

    jeffbader

    Wow, yeah I missed the bankruptcy. Good call and good lesson for me. Thank you!
     
    Nobert likes this.
  5. maxinger

    maxinger

    my goodness! look at volume histogram.
    There are many very long red bars.
    and tons of short green bars.


    and look at price chart; there are tens of gap down
    and zero gap up.
    what is happening to this company?

    is it going to pop down to $5? It was $5 in Jan 2019.


    When I was newbie investor decades ago, I used to invest in such companies thinking
    it was extremely cheap and price would sky rocket to the moon very soon.
    I used to think if I bought it at $12, and price went up to say $15, that was massive increase in profit of 25% !!!!!
     
    Last edited: Sep 19, 2019
    Nobert likes this.
  6. So @maxinger - since you're no longer a newbie investor, did you short PCG as much as you possibly can? Seems like selling it at $12 and waiting for it to go down to zero would be a MUCH more massive increase in profits! :)
     
  7. jeffbader

    jeffbader

    What happens in this situation? You've got a massive energy company that supplies power to a lot of people. What exactly happens when it goes belly up? I mean, does someone else acquire the company and just become the new PG&E? Won't that acquisition cause a spike in PCG? Some company will come along and utilize their infrastructure, right?
     
  8. maxinger

    maxinger

    I don't trade stocks anymore.
    anyway, if I were trading stocks, I wouldn't short it as it is extremely far too late.
     
    BlueWaterSailor likes this.
  9. The breakup of WaMu ought to provide some (rather obvious, in hindsight) clues:

    "If you are an equity shareholder, your shares are in Washington Mutual, Inc., the holding company for Washington Mutual Bank, and not the Bank. Washington Mutual, Inc., and the interests of equity, debt holders or other creditors of Washington Mutual, Inc., are not included in the closure or receivership of the Bank. Washington Mutual, Inc. filed for bankruptcy protection on Friday, September 26th. Please contact Washington Mutual, Inc. directly for information about this bankruptcy proceeding."

    https://www.fdic.gov/bank/individual/failed/wamu-q-and-a.html

    (Take-home: Chase gets all the tasty bits. You, the shareholder, get bupkes; go ask them guys with the empty pockets for what they'll give you.)
     
  10. tsznecki

    tsznecki

    The fact you are considering a long and you don't have the slightest bit of inclination what the stock is priced at post bankruptcy means you are in way over your head.

    I thought it's fall, not amateur season.
     
    #10     Sep 20, 2019