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The Company supplies metallurgical coking coal to the industrial sector in the People's Republic of China.
nuclear out, coal back in.
Chinese energy stocks are going to have a hard time failing. The demand is huge and this company is stepping up and consolidating several other coal mines and mining companies. Appears to have the go-ahead of some large scale financing as well. Set your sights on the long-term.
Member of the 2011 Scrooge portfolio.
Growth and I love the purchase of the coal mines which I think will be a boost to earnings for years. It might take a few quarters to get them integrated but I can wait.
love the coal long-term
China is a power house of manufacturing from all I have read. They have to have coal for now... who knows what the future will bring. (Look at that cell phone and all the electronics in your home... (MADE IN CHINA)
Great Growth Stock
China has slowed to 7-8% growth. "Coking coal prices will rise when china economy does take off.Since this is a value added, not a miner often confused, its product is used by the steel industry it will have pricing flexibility. China is putting nuc's in for power but nucs don't make coke for steel industry. Caveat is Chinese goverment gives this deal a big edge but may also take the deal away some day. For now market is running against it but this looks like a classic buffet buy (low) with good value. 50 million in cash, no debt, the mob (china government making offers to miners to sell out to Puda (and 27 other consolidators). This is looking like a double and hot stock in 24-36 months when the chinese economy gets hot again. Buy on dips to get your position, watch the chinese economic news and build while the world is panicky. Good Luck fools!
Consolidating thermal coal mines with annual capacity of 1.6 million tons with plans to expand to 3.2 millions tons/year. Based on the average margins for chinese coal companies, this is trading at a ridiculously low p/e. the metallurgic coal washing business is just an added positive
PUDA have been a coal washing company - coal washing is about as exciting as it sounds. In 2008 they did $1.12 of business. Enough to support a $12 share a P/E 10. In 2009 margins have been pushed somewhat and in the first half of the year they are doing 56% of the business they did in 2008 so around $0.63 or a $6.30 share. Currently it's trading at $7 and change... why you may ask? Good question, it just got approval to take over 8 mines in the Shanxi Province which initially corresponds to 1.6 million tonnes of coal a year but the aim is to expand it up to 3.6 million tonnes. http://finance.yahoo.com/news/Puda-Coal-Receives-Final-prnews-2580073087.html?x=0&.v=1Mining in China is needlessly dangerous and China overlords wanted mines to be run by more responsible people. They have made the local province leaders make the mine owners an offer they couldn't refuse. The cost to PUDA is probably unethically cheap but then so is killing miners because you can't be bothered to put safety equipment in - I've made an estimate in link to the costs - PUDA have $16 million in cash on the balance sheet so there should be no hint of dilution.http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42109220They will need to do safety checks, they will need to do geological surveys and they intend to open the mines 1 or 2 at a time - so some patientce may be required but after all the bumps and waits what sort or earnings could we expect?$1 - $2 earning is the estimate the Glen Bradford came up with... But hey find your favourite Chinese coal stock LLFH, SGZH or CHGY and look at the margins and look how much coal they are digging up and come up with your own numbres...http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42052907But one way or another that's $10 to $20+ of value to the $7 share we now find ourselves with... As a final kicker It should be noted that Coal prices are rising and especially for one type of coal, coking coal, China is now a net importer. The interesting thing is PUDA is in the best coal region in China, the Shanxi Province, and they are washing coking coal and selling it to their suppliers. It's quite possible that some of the coal is coking coal... however.. this is just a bonus.http://www.bloomberg.com/apps/news?pid=20601081&sid=a7IKXT8W2LnwBalance sheet has 16 million in cash and ows $7 million to a related party and a current ratio of 6. It is AMEX listed. So, there you go... assuming management can execute and you have the patience and you agree with Glenns numbers.... well you have a new coal company valued at $1 a share..or $15 million dollars Market Cap for the 360 Million tonnes a year of coal production .....rich
China Coal Play. China is building Power stations, etc which use COAL as fuel.. and hence this is a safe bet.
Small company with lots of room for growth in expanding China.
High growth coal (steel coking) company. A small player but the expansion and building in China will continue for years, even through the economic cycles. They just bought a substantial coal mine and as most know, steel prices have been going through the roof. This stock took a beating last year and has been a real bargain. I think $5 per share is possible by the end of 2008.
Growing China will need coal. Plus, I like the recent news about the CEO taking a high seat on the commerce board. Networking can sometimes lead to good things.
This company is just getting started and just bought more coal inventory. Chinese electrical power generation will be one of the fastest growing areas trying to catch up with consumer demand for years to come. Coal is a commodity that is actally found in China, just not enough.The more power plants they build the more coal will be in demand.The coal is also used in steel production.
Going long, growth looks great.
China coal for the steel industry.
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