Puda Coal Inc (PUDA)

[rru2s]

Coal stocks risk/reward comparison:

As a broad brush comparison, the Hong Kong listed coal stocks include the largest companies, but that market is much more overbought and P/Es are double those of the US-listed coal stocks. Among US listed stocks, the compromises are between having the lowest P/E, but along with that a smaller company and higher risk, versus a high P/E with a larger company, which is lower risk.

CHGY

CHGY is my first choice for the most short term upside because its P/E is in the low 4s, so when coal stocks break out this fall it could have the largest short term ramp up. However, long term it could be acquired since it is so small.

PUDA

The safest may be PUDA, and since it has just announced an acquisition, there is long term growth. However, since its P/E is in the higher range of US-listed china coal stocks, the short term spike might be smaller for the seasonal jump this year.

LLEN

LLEN falls in the mid-range of risk/reward with a P/E in the 6s, between PUDA and CHGY. It owns multiple mines so it has relatively low risk, but still a good upside.

I own positions in more than one of the above, a diversified basket allows one to take advantage of the full continuum of growth/risk strategies.