John Stephenson PG&E Corp PCG-N PAST TOP PICK Aug 30, 2004

A turnaround story to watch. This utility used to be the worst operator--inconsistent numbers, starting wildfires and declared bankruptcy in 2019, but emerged from that in 2022. Now have a new CEO who is turning around the company. Reported a decent quarter in late-February, reiterated their full-year forecast, saw 10% earnings growth in 2022 and showed equal that this year. PCG is more consistent now. Are guiding 10% quarterly earnings growth in 2024 and 9% in 2025 and 2026. Will not issue any new stock through 2024. Won in court in California that will allow them keep running a nuclear power plant. Meanwhile, all the recent rain has been a boom to their hydroelectric dam. However, given a lawsuit a fire victims' trust has been selling huge blocks of shares. Good news is that this trust is no longer the top shareholder. This recent pullback is a buy.

A great CEO and a name he's recommended before. They don't pay a dividend, but they could start paying one if they get a rate increase approved. This has rebounded hard from its lows in a beaten-up utilities sector.

A defensive play. Buy on a correction.

A turnaround story, improving under a new CEO. The growth recovery has been rocky but execution is sound. Their growth targets are impressive. Shares have rallied from $10 to $18 in recent years.

Has data centres and EVs in California. Cheap at 15x PE. As a regulated utility, they will see 10% EPS growth and likely raise their dividend.

Is good to own with our without rate cuts.

Has tumbled 15% since the LA fires started. Is a buying opportunity.

One of the biggest losers on the S&P in January. Hurt by the LA fires. Down 22.45% last month, making it dirt cheap now.

Is a utility that's blamed for the LA fires (wrongly), and shares are punished. He's sticking with it.