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Re: joenatural post# 3614

Wednesday, 10/07/2009 8:03:48 PM

Wednesday, October 07, 2009 8:03:48 PM

Post# of 7091
joe- yes, PUDA's earnings were not impressive compared to many other China small caps, I agree. But that has to do with the steel industry in China that was hit harder than most other sectors. PUDA is cylical and extremely dependent upon industrial growth.

I know you've never thought of PUDA as a cheap stock (even though trailing PE at today's close is just barely 8 for a NYSE listed company with a rock solid balance sheet).

I look at PUDA in comparison to it's peers LLFH and CHGY. PUDA's capacity will be 3x their combined capacity- and yet it's market cap today at $114M is still $40M less than those two combined.

So either CHGY and LLFH are very overvalued... or PUDA is very undervalued.

The market will sort it all out in time, but I believe NYSE traded PUDA will will rise to the valuation of these two OTC stocks (sounds funny, I know) over the next few weeks...and even then PUDA will have 3x their combined capacity.

So- although you may not agree, I think PUDA is very very undervalued here with that mine win.

Going forward, PUDA will undoubtedly have far greater revenue and earnings than it's had in it's history..and just two years ago, PUDA was a split adjusted $14/share stock.


“The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly.”

Warren Buffett

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