苏36
09-01
I’d choose C — wait until the wildfire liability rules become clearer.

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]

U.S.-Iran Swings From Ceasefire Rumors to Live Fire; Brent Briefly Tops $90?
The Middle East flipped in a week. On August 30 U.S. forces struck two IRGC sites on Iran's Larak Island — the first direct action in over a month — and Iran hit U.S. bases in return, promising more. Days earlier the market had been trading a ceasefire framework, including free passage through Hormuz, that was never officially confirmed. Brent briefly cleared $90 and sits near $90.50, WTI +2.43% to $85.43. Energy equities have priced none of it: XLE closed Friday +0.63%, before the strike. Hedge through energy names, or watch Hormuz transit first?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment