Well, I thought I would share my thoughts. I feel as if LLEN is the better play. Sure, PUDA's current strategy could potentially lead to higher earnings over time, but this is not a certainity. Considering that LLEN doesn't need to grow much in order to produce gains at these price levels (LLEN had a P/E (TTM) much lower than that of PUDA), it seems like the better bet. Also look at the return on capial numbers for both LLEN and PUDA. You'll notice that LLEN has much higher numbers than does PUDA. It appears like LLEN management is better able to invest the cash flow from operations to achieve high returns. Want to hear your opinions.
I became a LLEN shareholder this past week. I studied the financials of PUDA and CCME and liked the financial reports on LLEN better. CCME, which is not coal, has numbers that are unbelieveable and suspicious, so did not take a chance on that one, though it is still going up fast. Obama is supposed to be coming out soon with a report on China manipulating their currency exchange rates. I don't see how negative news there will affect LLEN in any way since the mined coal is sold in China, even though headquarters for the company is in Seattle. A U.S. presence and high insider ownership are positives for raising money and having more honest financial reports. I plan to hang on to LLEN for the longer term since the China story is just getting rolling. The 1900's were America's century, now I think the 2000's will be China's century and they have Japan and India worried.
Are you sure you studied & liked the financial reports on LLEN? You failed to mention that LLEN has very little cash to fund its expansion. That means the company at some point soon will have to borrow or dilute shares massively.
'...Puda Coal is a supplier of high-grade metallurgical coking coal to the industrial sector in China. The company reported second-quarter earnings of 36 cents per share, topping analysts' estimates of 24 cents per share. Revenues soared 72% year-over-year to $82.3 million driven by higher sales volume coupled with higher average selling price...'
October 02 2019 http://seekingalpha.com/article/228030-as-coal-heats-up-3-companies-with-persuasive-coal-stories?source=yahoo '...For the six months ended June 30, 2010, sales increased by +47.7% to $144.3 million versus sales of $97.7 million in the comparable 2009 period. Earnings per share increased at a faster pace to $0.72 (up +188%) in the six months ended June 30, 2010 versus $0.25 in the first six months of 2009. For the trailing twelve months ended June 30, 2010, sales totaled $260.6 million and EPS amounted to $0.82. There is just one analyst providing estimates for the Company, which includes 2010 estimated EPS of $1.42 and $2.00 for the calendar year 2011.
PUDA is in good financial condition. At June 30, 2010 they had total cash and equivalents of $70.3 million, total assets of $199.6 million, total liabilities of $69.1 million and shareholders equity of $130.5 million. This equates to net book value of $6.41 per share (including $3.45 per share in cash and equivalents) based on 20.4 million diluted shares outstanding during the quarter ended June 30, 2010.' Sharpei