Experts: PG&E bankruptcy likely despite positive fire report
I would love to know how a company that is publicly going through bankruptcy proceedings can have its stock price skyrocket 75% based on news like this. I understand the news is a huge surprise, BUT my suspicion is that algorithms ("algos") caught wind of the news on Twitter and social media and began trading, boosting the stock price at an incredible rate of speed. The price will likely be coming back down now that this news has been digested by the markets. The company is bankrupt for pete's sake!
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Title of the article: Experts: PG&E bankruptcy likely despite positive fire report
From the article:
"Investigators said a private electrical system, not equipment belonging to PG&E , caused the October 2017 wildfire that destroyed more than 5,600 buildings in Sonoma and Napa counties. California's firefighting agency concluded that the blaze started next to a residence, and it did not find any violations of state law.
It was great news for PG&E, which saw its stock price close at $13.35, a nearly 75 percent jump. Still, the company hinted in a statement that it wasn't retreating from its bankruptcy plan.
"Regardless of today's announcement, PG&E still faces extensive litigation, significant potential liabilities and a deteriorating financial situation, which was further impaired by the recent credit agency downgrades to below investment grade," the company said."