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.

PCG's stock price dropped 55.10% in the week following its bad news event - Get Irked

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.

Source: CNBC – PG&E plunges 21% amid disclosure of an ‘electric incident’ just before wildfire 
 

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Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.

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