I hope you were able to pick up some mega cheap shares on Puda Coal Inc. (PINK: PUDA) this morning as it tanked 75% to $1.50 from its Early April close of $6! It is now trading at just over $3 for a more than 100% bounce!

PUDA announced today that it has notified the AMEX that it does not intend to appeal the determination from the exchange to delist the company’s common stock.

The Independent Committee of the board is continuing its discussion with representatives of chairman of the board Ming Zhao regarding the preliminary buy-out proposal made by Zhao on April 29, 2011. (Read more)

Zhao issued a non-binding proposal to acquire 100% of the outstanding shares of common stock of Puda Coal in a going private transaction at up to $12 per share in cash. (Read more)

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The Bottom Line

PUDA has plummeted with many other Chinese stocks as worries arose among investors of shady backdoor dealings … The trick will be to play the movement on this stock and the anticipation of a potential buyout could be huge for the stock price from here. I wouldn’t expect its yearly high of $16.97 out of this, but there could be a huge bounce, so make sure to watchlist this stock!

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Good Luck,

Ian Decker

Disclosure: No Positions

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