Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural-gas storage facility operator PAA Natural Gas Storage
With that in mind, let's take a closer look at PAA's business and see what CAPS investors are saying about the stock right now.
PAA facts
Headquarters | Houston |
Market Cap | $1.3 billion |
Industry | Oil and gas storage and transportation |
Trailing-12-Month Revenue | $401.3 million |
Management | Chairman/CEO Greg Armstrong CFO Al Swanson |
Trailing-12-Month Return on Equity | 5.4% |
Cash/Debt | $519 thousand / $516.7 million |
Dividend Yield | 7.8% |
Competitors |
AGL Resources Enterprise Products Partners Sempra Energy |
Sources: S&P Capital IQ; Motley Fool CAPS.
On CAPS, 95% of the 57 members who have rated PAA believe the stock will outperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star TMFDeej, touched on the trends working in PAA's favor:
With the huge glut of natural gas storage facilities are filling up fast. Theoretically a lack of spare storage capacity means an increase in prices. Admittedly I am still in the process of learning about the natural gas storage sub-sector, but if it works the way it seems like it should companies that store gas will benefit as the glut of the stuff continues to grow as the year progresses. Heck even if nat gas prices begin to rise that just means that companies will produce more of it ... there's no shortage out there. Either way it seems like nat gas storage companies win. Add in a huge dividend and bam we should have a winner.
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