Benzinga - by Piero Cingari, Benzinga Staff Writer.
Hawaiian Electric Industries, Inc. (NYSE:HE) recently became the focal point of a gripping narrative, captivating the attention of retail traders.
Over the past month, this utility company has found itself navigating a tumultuous sea of controversy, legal battles and extreme market turbulence.
In the Russell 1000 Index, Hawaiian Electric has stood out as one of the most challenging performers in the past month, experiencing a precipitous decline that has erased two-thirds of its market value. It trails behind only AMC International Entertainment Holdings (NYSE:AMC), which endured an astounding 89% drop during the same period.
The genesis of this dramatic downturn is traced back to a catastrophic wildfire outbreak in West Maui, Hawaii, an event that not only led to the obliteration of Lahaina but also claimed the lives of approximately 100 individuals.
In the aftermath of this tragedy, allegations began to surface, casting a shadow of blame on Hawaiian Electric. Maui County took legal action, filing a lawsuit against the company and alleging a disturbing level of negligence. The contention was Hawaiian Electric inexplicably maintained power to its lines despite explicit warnings issued by the National Weather Service.
Chart: Hawaiian Electric Stock Reaction To Maui Wildfires
Retail Traders Join the Fray
This real-life drama has stirred the pot of Hawaiian Electric stock like never before.Benzinga recently conducted an interview with Tommy Tranfo, head of community at Stocktwits, shedding light on the situation.
Tranfo highlighted how Hawaiian Electric had flown under the radar until the wildfires struck. The tragic event caused a 13x increase in users adding it to their watchlist and there was a spike in daily message volume.
Much like a stock market battlefield, “the sentiment readings tell a story of a stock that is passionately debated,” Tranfo added.
Read Also: Overview Of Value Stocks In The Utilities Sector
A Parallel to Remember
Tranfo made an interesting comparison, likening Hawaiian Electric’s situation to British Petroleum plc‘s (NYSE:BP) oil spill in April 2010. In both cases, markets initially overreacted to the crises, with concerns about compensation and damages. But even after a sharp decline, BP shares eventually rebounded.Could Hawaiian Electric follow a similar trajectory?
Tranfo’s analysis of Hawaiian Electric sentiment on Stocktwits suggests that during periods of high activity, sentiment tends to tilt bullish, while in quieter times, it remains neutral — indicating an ongoing, healthy debate among investors.
Read Now: Biden Pledges $95M For Hawaii’s Electric Grid In Effort To Build ‘Stronger And More Resilient Future’
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