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.
Raise to date
of target $2m
Navigation of 2020 wildfire season will result in PE discount going from 9.0x to 14.0x by Q1 2021
We believe fire mitigation efforts will help manage risk / liability going forward
Wildfire season ends January 2021.
Institutional investors will add back CA utilities
The WHY NOT
Negligence by CA utilities could lead to wildfire liabilities, fines & potential CA State takeover
Exposure to equity securities, bonds and options to max upside and cap downside
Full financial model, peer trading levels, simplified valuation and legal documents
Weekly updates on performance and videos and meetings updating on key events