Summary:
- The stock's volatility, uncertainty, and crisis of confidence are key factors following recent events. Hawaiian Electric's equipment is accused, but evidence is lacking. Credit rating downgrades have impacted the stock's value. Hawaiian Electric comprises utilities, a bank, and a non-regulated generation company. Maui Electric's role is discussed in the context of potential legal defense. Management's focus is on maintaining liquidity and avoiding Chapter 11. The state's collaboration with the company is crucial for restoring confidence and long-term value. Investor concerns include power shutdown decisions and potential liabilities.
- Investors recall PG&E's bankruptcy due to wildfire liabilities and consider its share price rebound after regulatory and legislative interventions. Utilities' role in policymaking and the need for long-term solutions are highlighted.
- The broader discussion of modernizing the grid is mentioned as a future topic.
Facing lawsuits for its alleged role in the fires, accusations of mismanagement, and reports that the company is in talks with restructuring firms. Joining us with his outlook is Tim Winter, Portfolio Manager for the Cabello Utilities Fund.
Tim, it's good to have you. I guess the headline today was that the company argues restructuring is not the goal. Is that the reason for today's bounce? Well, yes. First, thank you for having me on and good afternoon. **Summary point**: The stock's volatility, uncertainty, and crisis of confidence are key factors following recent events. Hawaiian Electric's equipment is accused, but evidence is lacking. Credit rating downgrades have impacted the stock's value. Hawaiian Electric comprises utilities, a bank, and a non-regulated generation company. Maui Electric's role is discussed in the context of potential legal defense. Management's focus is on maintaining liquidity and avoiding Chapter 11. The state's collaboration with the company is crucial for restoring confidence and long-term value. Investor concerns include power shutdown decisions and potential liabilities.
Tim, it is a tough story. We appreciate your help today. Thank you.