4. Puda Coal ( PUDA) is located in China's Shanxi province and supplies high-grade metallurgical coking coal that is used to produce coke for steel manufacturing in China.

Puda's annual coking coal capacity is 3.5 million metric tons. The company recently moved upstream into coal mining as an acquirer, and the Shanxi provincial government has appointed Puda as a consolidator of 12 coal mines; the company foresees higher margins from these mines.

During the third quarter, Puda reported a 60% year-on-year increase in total revenue, driven by higher sales volume and average selling prices for cleaned coal. Net income rose 86% for the quarter. Gross margin stood at 10.7%, improving 1.1% from the same quarter of last year.

The company's future prospects are secure, as China's burgeoning electricity demand would require massive volumes of coal. The stock is trading at 9.9 times its 2011 earnings with 100% analyst buy ratings.

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