Buy, Sell, or Hold: Copano Energy

Joel South
Joel South
Sep 1, 2012 at 12:00AM
Other

In this video edition, Fool.com energy editor Joel South gives his reasons for assigning Copano Energy a hold rating. The company is attractive for a number of reasons, including a tasty 7.5% dividend and relatively safe operating cash generation. However, Copano has centralized operations around a slowly declining play coupled with static distributions (which haven't been increased since 2009), leading to today's hold rating. Check out the following video for more information on the company and see whether this could be an investment for you.

In an extremely low-interest-rate environment, MLPs and LLCs like Copano are good investments because of their sizable distributions. However, for investors looking to cash in on capital gains, there are currently a number of intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." You can get free access to this special report by clicking here.