no compression on # 2 cylinder

Yep, many a stuck valve from setting. You could blow compressed air into cylinder 2 and see if it comes out the carb, exhaust, or oil fill pipe. This will let you know which valve is the problem, or if it's a hole in the piston (unlikely). Be sure to have #2 on TDC firing before blowing in the air.
 
My vote is also a stuck valve. Might as well go ahead and remove the valve cover so you can work with it. Ethanol fuel can cause this. Marvel mystery oil added to the fuel and crankcase will help avoid this problem.
 
Agree, MMO is the way to go. I use 4 oz per 10 gals in ALL my old cars and 1/2 QT with an oil change. Been burned by crapahol fuel too many times, it is a pox
 
With the valve stuck in the open position, I have removed the spring and used pliers on the valve stem to gently move and unstick the valve . Kroil, PB Blaster or some other penetrant can be sprayed on the valve through the spark plug hole. In worse cases the manifold assy. will need to be removed so that penetrant can be applied directly to the valve stem. It can be a pain but I've never had to remove the head to unstick a valve.
 
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