Below are the 5 best cheap stocks to buy now according to billionaire Abrams. For a comprehensive list please see 10 Best Cheap Stocks To Buy Now According To Billionaire Abrams.
5. PG&E Corporation (NYSE: PCG)
David Abrams strategy of initiating a stake in PG&E Corporation (NYSE: PCG) hasn’t worked in favor of his hedge fund yet. Shares of PCG fell 29% in the last twelve months and extended the underperformance into 2021. It is the fifth-largest stock holding David Abrams 13F portfolio, according to the latest filings.
In a Q2 investor letter, Baupost Group commented on few stocks including PG&E Corporation. Here’s what Baupost Group said:
“Fortunately, our investment in the subrogation claims and equity of Pacific Gas and Electric, the firm’s largest position, was not impacted by the COVID-19 fallout. As we expected, PG&E’s bankruptcy plan was confirmed by the judge overseeing the case, and the company emerged from bankruptcy on July 1st. Importantly, upon emergence, cash was placed in a trust for the benefit of the subrogation creditors. A substantial initial distribution from this trust, estimated to be roughly 80% of anticipated recoveries, is expected to be paid later this month.”