Approval of debtor-in-possession loan
According to Reuters, PG&E (PCG) won a court approval on March 27 for a $5.5 billion loan to help keep up its electric and gas delivery operations.
PG&E stock has surprisingly shown a significant rally this year. The stock has surged more than 50% since it filed for bankruptcy in January. Prior to PG&E’s filing for bankruptcy, its stock touched a record low level of ~$5.0. Speculators who bought PG&E at close to that level just ten weeks ago could be sitting on a hefty gain of more than 250% at the moment.
PCG stock is currently the most volatile stock among utilities. Its implied volatility is at 60% compared to utilities’ (XLU) average volatility level of ~12%. PCG is trading in the oversold zone with a relative strength index of below 30.