for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

Stanelco up after clearing hurdle

TERRY MURDEN


SHARES in Stanelco have doubled to 17p in the past fortnight as the technology companys food-sealing kit produced positive results.

The company uses radio frequency to seal plastic packaging and last week said it had passed the "final hurdle" in product tests with Asda. The company is working with Grampian Country Foods and with most supermarkets, but tests with Asda and its suppliers are at their most advanced stage.

Stanelcos shares have been rising since the end of last year and the company took advantage of the current surge to place 38 million shares at 12.825p, raising 4.8m before expenses for working capital.

Chief executive Ian Balchin described the Asda trial as "an important step on the road to commercialisation".

The companys core business is the manufacture of optical fibre using radio frequency technology. Current developments include biodegradable air cushion packaging, water-soluble detergent capsules, foamed starch trays, edible sachets and waste packing. Full-year results are due on February 28


http://scotlandonsunday.scotsman.com/business.cfm?id=165172005

Good posts over the weekend: not quite as euphoric as during the week but some more substance. My comments:
AndySmith. Thanks for good posts. Its great having your inside view. I had assumed that the 50M was revenue as the projection for years 2 and 3 was 1000 machines. At a pe of 30 that would imply a cap of 250m and an sp of 30p. Until we have some updated projections I believe that to a realistic target level. Fine to be overweight, even at 50%+. I am about 40% but that is lower than if I had been directly investing in the shares; since I am primarily into CFDs, I have been effectively diluting the holding by reinvesting the margin in other companies. Agree no point in stop losses: the fundraising gives support at 13p but that must be an obsolete price; no point is 'stop gains' either as that is what a profit-taking price effectively is in this type of situation.
AdieH. Glad you're holding. The 20p is already obsolete and I would be looking towards 30p. However, the key chart is that for momentum. That should give a warning when the spurt is running out of steam and could be the time to take some profits, although certainly not all. I would expect the sp to overrun at some stage but I don't think that will be this side of the announcement of the ASDA deal.

Aldwick: Agree a significant difference to the PDX Cadbury situation. This exclusivity would be strictly limited on a time basis; it must be worth significant funds for ASDA to have a lead on the rest. There appears little reason to doubt that their competitos will want to buy in. Re the press, a clearcut BUY in IC as well as Shares, although obviously prices are out of date.

ssanebs: PDX is a good comparison and I got myself very unpopular by arguing that PDX was over-priced compared to SEO; it would have been fairer to stress that SEO were under-priced as, as per the IC, PDX are fairly valued around 2. But SEO has now overtaken PDX as it is the cap. that matters rather than the face price.

AdieH: I have 20p as a checkpoint. I expect it to hit that this week ahead of the prelims. For once, we should not sell before the prelims because I believe they will put some flesh on the bones in terms of projections. They have to tell us what they are building up for, and since they last reported projections must have risen because the degree of success in the ASDA trials, not just the proof that costs can be saved, but the extremely important things sich as odour retention and shelf life.

Ruthie: Another shrewd girl amongst posters, such as Dynamite and moneyplus; you are great stockpickers. I gained the plaudits of iPublic on the YOO thread by moving back in just before the share got moving this week.

So onwards and upwards this week. AndySmith can go out his business in an aura of contentment. Don't want anyone reaching for the Sell button. The only thing that gets my goat is that we lost to France and South Africa today, whereas, with Wilkinson and Flintoff respectively, the tables would have been turned. In the rugby case, good to have the wake-up call.

Eric

That prediction of 200p is slightly a bit high ssanebs the M/cap of pxd is only 85m at its present price. I worked it out the other day on my fingers and I am sticking to 150p with in two years thats when I am giving jimmy b my Ferrari well I call it that, its in the form of a E reg Orion my passion is my Wing not my car. Looks like we might be getting some Hoots Mons on the board as of tomorrow after the report in the Scotsman, its hard enough trying to under stand TheFrenchConnection (no a offence intended my daughter lives in Scotland) up yer kilt.
Aldwickk we dont really want press coverage yet its ticking up nicely with out it, we could do with the press when the price reaches about 45p to give it a kick in the right direction.
Andysmith I dumped my asm last week for more seo only short term asm has a lot of potential after the acquisition of Aptamera I will get back to asm at a latter date.

Thanks driver i didnt know you were giving me your Ferrari..
I was going to bail out at 20p ,but i think ill hang in there with you guys ,this is looking too good..Roll on tomorrow! ,,Jb...

hello. looking forward to next week. not seen any press mentions in the times, express or saturdays mail. a touch disappointing, really.but i feel fairly certain the current rise is being watched. heres to next weeks fun and games....cheers!!!!!

Eric, the 50mpa pre-tax profits is the prediction for 2007, yes 2007, I am long-term holder and I expect that target to be increased before then.
If during the next 12-18months, with visibility of earnings more clear, SEO sp trades towards those expectations then not only should the sp be closer to 1 than 50p but those of us still holding will be in significant profit and SEO will be in the FTSE250. SEO is the ASOS of 2005 and I see two potential dips this year, 1) results for 2004 will not be pretty but anyone buying now should be buying for 2005/6/7, 2) cc. Obviosuly, any significant drops on either occasion and we should have our wallets ready!! Two key benchmarks, former Finance Director selling to son at 5.625p, there was one more chance to buy below 5.5p and I took it. Last weeks placement at 12.875p easily raising >4m, glad I topped up at 9p the week before, only wish I had done more but can't get too greedy.

Eric, inside view is only an appreciation of the packaging market and its needs having worked in this industry for 15years. No more, no less.

andysmith

The forecast appears quite reasonable. If you assume that they have prodiced 1000 machines (or retrofits) in the next two years at royalties of 30K per time, then that is 30M in 2007 going straight to the bottom line. Say 2000 new machines at average 30K is 60M say 20M giving a total of 50M. The revenue per machine and margin may be high but, equally, the number of machines is likely to be very low. That justies a cap. of 1 billion at a pe of 20 or an sp of 115p. At this stage, the range is likely to be 50p to 150p. SEO were pretty open about prospect at the interims so I would hope for some good projections, hopefully at the interims on the 28th or following the ASDA contract. I can't see much hesitation in the rise as people will hesitate to come out until there is good reason for a pause.

I thought it would be prudent to take a look at the other issue, i.e. the cc. The most positive thing, from the point of view of followers of this thread, is that the action concerns InGel division of SEO and can have no bearing on the R/F packagaing of foodstuffs. InGel is backed by Cardinal Health, a Fortune 500 US company, I believe to the tune of 10M (going be memory). For 60 years, capsules for ingesting have been made with gelatine. B**G have wrapped their technology round with a mass of patents and SEO have been found to be in breach. Damages have to be assessed but a statement from B**G (bosley doesn't like the full swearword!) indicates that their primary concern is to put a warning shot across the bows of any other company, here or over the pond, who threatens their life blood. Fair enough. Its only real relevance to SEO is that these things tend to frighten people. What we need to recognise, though, is that if the court case had not been around SEO must have been valued more highly than PDX, i.e. it would have been over 10p for months and most of us would not have got in for plus or minus 6p. I'm not trying to open up the issue, or start a debate, but rather presenting the result of my own exploration - forewarned is forearmed. You mentioned it here as a potential knocker in the future for the share price. My own view is that SEO will take it in its stride.

In cautious mood: EOD for Monday of 18p; EOW of 20p. 28th Feb - depends on company's statement: could be profit-taking if company play cards close to chest. Could roar away to 30p by the end of that week. Hold until Prelims; then top slice but no more. Uncle Eric advises It! lol! :o)

Eric

eric, when the judgement was announced, that the judge had found in favour of "them" (:))seo did go into freefall.BUT by the end of the day had recovered well. i think thats as bad as it will ever get .

bos: agreed, as usual. Bit of a gnat nuisance factor, really. Might distract others, but we as boys (and girls) of the world, know better. Mind, might have a bit of BPRG having looked into them! Promise not to be two faced like TFC! lol! Eric

Amities / l am at an utter loss to see how my comments on The BPRG thread can be construed as having either been deliberately duplicitous nor intentionally misleading to anyone as to the prospects of SEO. THEY are merely MY point of view; and simply because they seemingly run contrary to the series of consensus logics expressed on this thread does not make them wrong .l certainly wasnt being two faced ..Like everything;every company has both a converse and obverse side. .ln that specific article on BPRG i deliberately made it abundantly & mainifestly obvious i strongly DISLIKE the ex city darling as an entity in its own right .ln equal measure i have made no secret of the fact i am OVERWEIGHT on SEO. .Like many on here i am utterly convinced as to the massive market potential of RF;and furthermore,like Bos , l enjoyed basking in the sea of blue emitted from my screen reg SEO this past couple of months ..But l beg to differ in so far that i cannot act as an ostrich and bury my head in the sand and ignore the implications of a lost prolonged High court action . Lets not forget how long this saga ran; and what with High court time costed at up to 10k per hour and with SEO liable for both thier own costs and those of BPRG ( who were insured- and whose insurers will be presing for settlement as will SEOs legal represntatives ) the mind boggles as to the final expense. ..As a footnote a barrister friend of mine tells me that the ultra specialist field of patent law is a labyrinth of vagaries , intricate and complicated; and as a consequence there exponents- from top QC s to instructing solicitors command premium fees ....And how could SEO hope to settle with a mere 8ook in the bank ? . Either with assets or ,,,and it is only a MERE suggestion: but what with such a derisory rights issue of not even 5m . Could it be a start to settling thier incurred legal fees . . bonne chance ,,,,a'bientot ,,,,,....

morning all. good positive start . looking forward to this week. eric, the more reasonable of us have always said that seo and bprg have good futures, they just need to get on with things.

roses are red, seo's gone blue
another week like last week
and i think i will too!!!!!
(well it is valentines day)

Morning Bosley - suggest you stick to share dealing and leave the poetry to others !!-
Only Joking - enjoy the blue
Baza

Lots of big sells.

Thank you so much to Driver and another poster who mentioned on friday that they hold SEO in an ISA. For some reason I got it in my head that its an AIM stock -I have now added a shed load more to my ISA (I didn't have anymore funds available outside it). Only wish I'd known it when it was 6p!

500,000 buy just showed up, no time , delayed trade.

Lots more sells - but to be expected me thinks

another 500,000 buy.

looks like the tree shaking has started.

Planttec,, do you yhink this is the mms looking to aquire stock..Jb