The pro football season kicks off tonight, and the Fool is getting in the spirit. Our fantasy team might just help you tear up the investing gridiron! Head this way to read all about the starting lineup.
Down in Texas, folks know their football, and they know their oil and gas, too. I figured I might as well unify the two, and so I present to you an all-energy squad that recruits firms from all over the Western Hemisphere. Let's meet this team of heavy hitters.
On offense, we have the Brazilian bruiser Petrobras (NYSE: PBR ) . What football fan wouldn't love a company whose ticker symbol is a common abbreviation for a beer that comes in a can?
Petrobras dominates the Brazilian energy market, with a near-monopoly on production in the country. Petrobras is also much more than a bet on the Brazilian oil and gas market. As one of the world's premier offshore operators, it's a great play on the continuing push into deepwater basins worldwide.
As a recent draft pick on our Income Investor scorecard, Petrobras not only has the offensive muscle to generate solid capital gains, but it also pays out a beefy dividend yield. That will help cushion the inevitable blows that the firm will take in the volatile energy field.
On defense, we've got another impervious pipeline operator and fellow Income Investor selection, Copano (Nasdaq: CPNO ) . This midstream marauder is ready to tackle any of its customers' oil-and-gas gathering, processing, and transmission needs. Copano operates in Texas and Oklahoma, so you can be sure that this firm knows a thing or two about how the game is played.
Midstream companies are a natural fit for the defensive line, because of their lower exposure to commodity cycles. This player, which is structured as a limited liability company, is particularly attractive because of its lack of a general-partner interest. This means that when the company's distributions get hut-hut-hiked, more cash hits shareholders' pockets. No wonder James Early also recommended this firm to Foolish dividend-seekers.
For my special teams, I've picked a punt returner -- a stock that has gotten punted by investors but that I think will bounce back and provide outsized returns. That would be Global Gains selection Precision Drilling Trust (NYSE: PDS ) , the leading Canadian land driller.
As I've noted before, Precision experienced some precise pain as drilling activity turned down this year. I'm not looking for an imminent snap-back here, but I think anyone with an investment horizon of five years or more would be well served by snapping up shares of such a strongly capitalized and dominantly positioned firm.
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