What does a bad news event look like to a stock?
CNBC reports that Pacific Gas & Electric Co. (PCG) announced that it might be responsible for the Camp Fire in California following an “electric incident report” disclosed to the California Public Utilities Commission on November 8.
PCG’s stock price has dropped 55.10% in a week on the news from a high of $49.42 to a low of $22.35 a share.
If a company-specific news event of this magnitude happens to one of your investments, the prudent and most conservative approach is to sell the stock and take the loss.
It will be some time before PCG recovers from this, if ever, as lawsuits are already rolling in.
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