COPANO MAKES A BIG BUY AND URGES

A BIG DISTRIBUTION INCREASE

Haven't had one of these deals since early July and this one is a nice one for Copano holders. The company is making a big purchase and it is going to ask the board to take the distribution to 53.5 cents a share or a 9 cent increase (22%) beginning this quarter.




The chart shows Copano has held up fairly well during all this August turmoil. The company also sees the distribution going to 3 bucks annual by 2010. Now that is 2+ years from now but at 3 bucks annual works out to at least 2 cent quarterly increases for the next 10 quarters. A 6% yield gives you a $50 price...a 5% yield which is still above its current yield of 4.5% gives you a $60 target by 2010. Meanwhile going to .535 gives you $2.14 annual and at its current yield gives you a $47 price. Which ever way you look at it Copano (CPNO) should be up sharply today.

This news is leftover from Friday. Plains All American (PAA) has filed for an IPO of its GP. This will be one to watch when it happens since these guys seem to do things right quarter after quarter.

Meanwhile another hurricane does not go into the Gulf of Mexico as Felix takes a track even further south than Dean did

Natural gas this morning is taking gas down 21 cents to 5.25. Give me a 4 handle and i might go long the Natural Gas ETF (UNG) for a trade only. Until then i will be watching for any sign of a short term bottom. Again this would be only for a trade. Crude Oil is flat to a little higher this morning. 10 year rates are at 4.52% and stock futures are just a touch weaker but nothing tragic. Nothing on the upgrade downgrade list so far.