PG&E Corporation [NYSE: PCG] recorded significant gains in Wednesday’s trading session. The stock closed the day with gains of 22.07%. This followed news that Alberta Investment Management, a giant Canadian fund, had bought PG&E stock just before the California wildfires. The company also got a boost from reports that there was progress in the management of the fires that have been ravaging Sonoma County in California. According to the California Department of Forestry and Fire Protection, 30% of the Kincade fire had been controlled. PG&E also reported that it had restored electricity to three-quarters of its clients that were cut off from electricity on October 26th.
The company continues to restore power to different counties in California. As of 30th October, the company noted that it had restored power in the counties of Fresno, Alameda, San Joaquin, Siskiyou, Humboldt, San Mateo, and Santa Cruz. It also announced that it is doing safety patrols and they will take place during the day. Other measures that the company has taken towards managing the situation include operating community resource centers and offering emergency preparedness tips. These seem to have renewed investor confidence in the beleaguered stock.
Nonetheless, challenges abound for the company. It is facing pressure from multiple directions as hundreds of thousands of Californians remain without power. The company is being criticized for inadequate execution and proper communication in managing the blackouts.
Looking at the daily chart above, it still reflects the challenges that PCG is going through. The trend remains largely bearish. However, in yesterday’s session, there was a gap up, an indicator that bulls have confidence in its potential turn around. The stock traded between lows of $5.41 and highs of $6.35 before closing the day at $6.14. The volume was quite high and stood at 56.27 million yesterday.
About PG&E Corporation
PG&E Corporation is a utility company that delivers electricity and natural gas to corporate and individual clients in California. The company has its headquarters in San Francisco, California.