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How Much Should Puda Coal Inc. Be Valued?

|Includes:Puda Coal, Inc. (PUDA)

That's what CITIC thinks with respect to the Coal Mining Activities Puda Coal Inc. disclosed to own in its 10K for FY2010:

The Equity Value of PUDA Coal Inc. Mining Activities should therefore be: 1,173.50m USD

Here is a conservative Estimate of the Value that the Coal Washing Plants Owned by Puda Coal Inc. (if info disclosed in the 10k were accurate):

The Equity Value of PUDA Coal Inc. Coal Washing Activities should therefore be 175m USD

Resulting in a Puda Coal Inc. Total Value of 1348.50m USD

Assuming a 2.00 Debt-to-Equity* (Highly leveraged) for the Coal Mining Segment, its Net Value should be: 391.16m USD

A conservative estimate of Puda Coal Inc. Total Value, according to CITIC Trust Data, Total Value is therefore: 566.16m USD

How much will Mr. Zhao Ming Pay?

*. The median Debt-to-Equity Ratio for U.S. Listed Coal Enterprises is 1.49

Disclosure: I am long OTC:PUDA, OTC:YNSKF.

Stocks: PUDA