HEADER

Wildfire liabilities drove PCG to bankruptcy in 2019. They exit bankruptcy in 2020 after settling wildfire claims but trade at a significant discount to peers at 9.0x vs. peers at 17.0x 2021 PE

This ‘wildfire worry discount’ is overblown and will reduce by early 2021 post wildfire season. We have studied the significant efforts by CA state and utilities that help insulate shareholders form wildfire risk.

Praful Mehta

Rating

Closing on

8/31

Raise to date

45%

of target $2m

Min Investment

$10K

60%

Target Return

The WHAT

Navigation of 2020 wildfire season will result in PE discount going from 9.0x to 14.0x by Q1 2021

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The WHY

We believe fire mitigation efforts will help manage risk / liability going forward

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The WHEN

Wildfire season ends January 2021.

Institutional investors will add back CA utilities

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The WHY NOT

Negligence by CA utilities could lead to wildfire liabilities, fines & potential CA State takeover

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The HOW

Exposure to equity securities, bonds and options to max upside and cap downside

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The Detail

Full financial model, peer trading levels, simplified valuation and legal documents

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Meetings

Call Schedule:

Fri:

Sat:

Sun:

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Communication

Weekly updates on performance and videos and meetings updating on key events

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Another option considered but not selected

1

Largest utility in CA filed for bankruptcy in 2019 because of wildfires liabilities. They exit bankruptcy in 2020 after settling wildfire claims.

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