Add one more to Nasdaq's growing list of fraudulent Chinese companies: trading in China-based Puda Coal (PUDA) was suspended over the weekend due to an SEC investigation into the "lack of current and accurate information" on the company. Better late than never, considering the stock has lost over 78% of its value since January.
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."
Coal stocks are deeply in the red on fears a weaker-than-assumed China may reduce its demand for the power plant fuel and steelmaking ingredient. YZC -7.9%. LLEN -7.3%. WLT -7.1%. PUDA -6.5%. ACI -6.5%. BTU -5.5%. ANR -5.9%. MEE -5.4%. KOL -4.7%.