Puda Coal (PUDA -35%) says it is reviewing allegations regarding improper share transactions by...


Puda Coal (PUDA -35%) says it is reviewing allegations regarding improper share transactions by its chairman. Alfred Little cites "the complete lack of internal control that allowed Chairman Zhao to first steal the company, then sell half the company (pocketing the proceeds) and then pledge the other half of the company to a Chinese PE fund while piling on $530M of 14.5% debt."

Comments (9)
  • Duude
    , contributor
    Comments (3413) | Send Message
     
    Its crap like this that keeps me out of Chinese stocks. Its not just out of what this thief did but that Chinese officials will look the other way. Might as well ask Bernie Madoff if he'll have any follow up investment funds to invest in.
    8 Apr 2011, 04:07 PM Reply Like
  • wyostocks
    , contributor
    Comments (9115) | Send Message
     
    Buyer beware...................
    8 Apr 2011, 04:16 PM Reply Like
  • RK
    , contributor
    Comments (399) | Send Message
     
    Being a bystander, I find the unraveling of these fraudulent companies amusing. The investment bankers who brought these companies to the US market should be sued.

     

    More power to the people who do the detective work and in the process get rewarded for their effort.
    8 Apr 2011, 04:57 PM Reply Like
  • wyostocks
    , contributor
    Comments (9115) | Send Message
     
    RK;
    "The investment bankers who brought these companies to the US market should be sued."
    Don't be so sure that they won't.
    I agree though, it is amusing that people actually "invested" in these unknown stocks. Probably the same who owned Enron.
    8 Apr 2011, 06:09 PM Reply Like
  • nocnurzfred
    , contributor
    Comments (822) | Send Message
     
    News on PUDA is very scant at best. I bought into the metalurgical coal thing through PUDA. Would have been nice if there was some early morning news of the stock allegations Thursday, rather than later in the day after the damage was done. After losing money early in my stock investing travels, in small & penny stocks, my first "real stock" purchase was Enron. All the "legitimate" news organizations stood firm that Enron was solid, while only a couple posters on message boards were blowing their trumpets about impending doom for the company.
    9 Apr 2011, 11:17 AM Reply Like
  • tbone
    , contributor
    Comments (54) | Send Message
     
    why would a huge investment firm like Citic invest in a transaction that was secured by stolen property ? and why would OR how could such a transaction stand under ANY legal system - even one as convoluted and arcane as that of the People's Republic. This is NOT a case of fraud (assuming all allegations are valid) just a brazen theft.
    8 Apr 2011, 07:11 PM Reply Like
  • wyostocks
    , contributor
    Comments (9115) | Send Message
     
    Dude, is there a difference?
    8 Apr 2011, 08:44 PM Reply Like
  • pat45
    , contributor
    Comments (462) | Send Message
     
    Dont know if the allegations are true-if they are I hope chinese put him in jail as this is outright theft. But "documentation" may be falsified and has no paper trail as to where it is from--except geoinvesting.com. One thing for sure is that they shorted stock before publishing the paper and are making millions from their short. If this is a short and negate I wish the SEC would jail them for spreading lies-who knows the truth-but one side definately should go to jail. I cannot believe CTIC would make an undisclosed loan and brokerage houses miss this.
    9 Apr 2011, 05:03 PM Reply Like
  • nickcemail
    , contributor
    Comment (1) | Send Message
     
    I purchased PUDA on Friday at the price of $6.17.

     

    SHZ also a mineral company in China that also is a reverse equity entity faced allegations of fraud that were later explained. Unfortunately, that did not keep the price of the stock from being sliced in half. The price has since been restored.

     

    The point I am making is that this is a concern, but if it is as described a case of theft, the ownership of the company and the acquisition of debt will not stand.

     

    Coal inside of China, especially metallurgic grade coal, is a valuable commodity that China is importing in great quantity. PUDA is in China and has millions of tons.

     

    Only more information and time will tell.

     

    I plan to sell my 1,500 shares of PUDA for $7.21.

     

    Good day.
    10 Apr 2011, 11:39 PM Reply Like
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