L&L International Holdings, Inc. is a profitable coal producer with operations in the resource-rich Yunnan Province, China

Coal provides more than 70% of the energy needs in China, and China accounts for one-third of world’s coal consumption. In fact, as the RedChip Research report on L&L International (OTCBB: LLFH) states, “Coal is the basic constituent material use in the production of steel and electricity in China.”

And though China is the largest producer of coal in the world, its energy needs are so great, it still must import coal to meet its insatiable thirst for coal.

Now, here is the drift:  L&L International owns and operates coal mines in the coal-rich Yunnan Province of China. LLFH under the leadership of Dickson Lee, a highly educated, English-speaking Chinese national, just reported net income of $2.0 million for 3QFY09, a 210.8% year-over-year increase. Earnings grew 233% year-over-year to 10 cents per share.

The stock is not yet liquid, which is exactly when the smart money should get in. Few know the LLFH story yet, but be sure that RedChip will change that in the near-term. I am confident that a NYSE Amex or NASDAQ listing will be in the offering and when that happens, this stock should trade in line with its peer group. Our 12-month target is $5.55 based on a discounted cash flow model (click here to access our full-research report). At $5.55 the stock would trade at approximately 12x forward earnings. You can buy the stock today for $1.00.

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As always, please read RedChip’s full disclosure for L&L at http://www.redchip.com/disclosures.asp?src=rcv. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.