PCG and EIX look tempting after falling more than 20%, but I don’t think this is a simple “buy the dip” situation. The core problem is not whether these companies are profitable today; it is the uncertainty around future wildfire liabilities and whether California’s Wildfire Fund will have a sustainable replenishment mechanism.
A stock can become cheaper while its risk premium is rising at the same time. That is exactly what I see here. Until the rules become clearer, PCG and EIX could remain highly sensitive to headlines, legal developments and financing costs.
If I wanted utility exposure now, I’d prefer XLU or VPU for diversification. For individual California utilities, I’d rather sacrifice the first part of a rebound than catch another policy-driven selloff.
@Tiger_comments [胜利]
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