Shares of PG&E Corporation (PCG) are not having an easy ride Friday. While shares have bounced from session lows, they're still down 8% as investigators study the cause of the fire.
When a deadly wildfire in Northern California's swept through the state's wine country areas in Sonoma, Napa and Santa Rosa, early estimates said more than 100,000 PG&E customers were left without power. The devastating fire has erased thousands of buildings and killed more than 30 people. But PG&E shares aren't down on the prospect of less customers or powerless homes. They are taking a dive because some reports are suggesting the company's lack of equipment maintenance may have caused the deadly fire.
"Be aware of that [report]," TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment Friday.
Specifically, the report questions whether faulty equipment and downed power lines were the cause, and whether PG&E had properly maintained the trees surrounding these power lines. PG&E admitted it's had equipment issues, but says it's "highly speculative" to suggest it hasn't properly maintained its equipment.
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Now the California Public Utilities Commission is requesting that the company preserve "all evidence with respect" to the wildfires in the area, Cramer pointed out.
Shares are suffering from their worst one-day drop in years and "I don't know where that bottoms," concluded Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
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