Sinocoking Coal Shares Explode

News summarizing Sinocoking Coal (NASDAQ:SCOK)  business opportunities has extended its shares strong momentum into this morning's trading session. Recall, we added the stock to our data base on February 10, 2009 at $4.30.  At near $20.00, SCOK now trades a P/E of 15 on June ending 2010 forecasted implied EPS of $1.26.  Investors should be aware that as SCOK enters 2011, it may require financing to achieve its aggressive expansion plans to expand capacity.

Now, we are curious if GeoBargains L&L Energy (NASDAQ:LLEN) and Songzai Intl Holdings (OTC BB:SGZH) will follow suit.

Arriving at short-term conclusion on SGZH is a little tough since the company has limited investor relations and had what appears to be some temporary issues that negatively impacted its 2009 third quarter results. Still, the company trades at a P/E of 5 and maintains a low price to book multiple.

LLEN trades at a P/E of 9 on 2010 EPS guidance of $0.94 (fiscal year ending April) and is well into its expansion strategy.

^a Adjusted for a 25% tax rate.

Other  Chinese coal companies include Puda Coal (NYSE Amex:PUDA), Yanzhou Coal Mining Co (NYSE:YZC) , China Coal Energy Co (PINK:CCOZF) .

GeoInvesting.com Disclosure

Positions: Long LLEN, SGZH, no positions in SCOK, PUDA, YZC or CCOZF

You agree that you shall not republish or redistribute in any medium any information on the GeoInvesting website without our express written authorization. You acknowledge that GeoInvesting is not registered as an exchange, broker-dealer or investment advisor under any federal or state securities laws, and that GeoInvesting has not provided you with any individualized investment advice or information. Nothing in the website should be construed to be an offer or sale of any security. You should consult your financial advisor before making any investment decision or engaging in any securities transaction as investing in any securities mentioned in the website may or may not be suitable to you or for your particular circumstances.