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

Bosley.....yes it has bounced at that level a few times however the downtrend is very much intact which has governed the chart since March. and if support at 13 breaks then it will move below 10p very quickly.....a downtrend by its very nature (which no one can argue about here) means the share price keeps getting lower...........

simple trading technique is to buy pullbacks on a rising share and sell rallies on a falling share......SEO is falling as even the most blinkered people on here must admit

I agree I think the sp will fall but yet again I can't see it going <10p. I think 11 to 12 is more realistic as the sp has shown support here before. My stop loss is a simple safe guard to protect profit already made. I will rebuy into SEO at a lower price if my stop loss is triggered. I agree with Shamonas earlier post regarding Greenseal and SEO recovering later in the year. Lets see what happens with Asdas exclusive year deal which if I am correct has around another 3 months to run.

treblewide, thanks for the reply.
explosive, asda deal has another 7/8 months to go yet.

http://www.fool.co.uk/news/comment/2005/c051219b.htm

a writer with some sense - well done TMF - it shows some do not just get ramped in with the others -



Stanelco Still Has More To Do

By Ed Bowsher (TMFArkle)
December 19, 2005


Stanelco (LSE: SEO) has a huge following on share discussion boards, and it's easy to see why. The company has several eye-catching packaging technologies and a partnership with Asda too.

The problem is that Stanelco is valued at 137m (14.65p share price), yet it only generated revenue of 1.33m in 2004. Stanelco needs some decent growth to justify the current price, and I'm not wholly convinced it will deliver.

Stanelco's best-known technology is Greenseal, which is used for packaging meat and other foods. Normally when you buy some lamb chops in a cling-film container, the plastic wrapping has been sealed in place by heat. Greenseal, by contrast, uses radio frequency (RF). In other words, high frequency radio energy generates lots of molecular agitation so that two materials can weld together.

Stanelco claims that RF sealing is 20% cheaper than using heat and there are fewer leaks. What's more, RF-sealed plastic trays can be recycled, unlike heat-sealed trays.

The company's big deal with Asda was announced in March. Asda said then that it expected its suppliers would convert several hundred machines to RF.

House broker Evolution has estimated that Stanelco could receive an annual licence fee of 25- 30,000 for each machine. Apparently, there are around 50,000 sealing machines in Europe and North America.

If Stanelco persuaded supermarkets and food manufacturers to convert 5,000 of those machines to RF sealing, Stanelco would receive annual revenue of something like 125m a year, perhaps more. Not bad for a company with a 137m market cap.

On top of that, Stanelco is developing several other products and technologies. These include starch-based materials such as a biodegradable cork for a wine bottle.

The company also announced a partnership last week with a US packaging company, Perseco, which has McDonalds (NYSE: MCD) on its customer list.

So why am I not wholly convinced?

It's partly the history of the company. This company has been operating for more than 50 years yet it hasn't had much success. Two years ago, it was convinced that its fortunes had changed thanks to a new technology for encasing pills. But then the company got mired in litigation with Bioprogress (LSE: BPRG) on patents.

Over the last two years, Stanelco has announced a flood of new initiatives which all appear to have great potential. But I can't help wondering whether the company should have concentrated on progressing Greenseal instead of all these new ideas.

After all, the Asda deal has progressed, but not as fast as some had hoped. Even Evolution has cut its forecasts and now expects sales of only 18.2m in 2006.

What's more, Ian Balchin, Stanelco's vice chairman and former CEO, doesn't appear to have been wholly convinced by all the good news. He sold a shed load of shares in the summer of 2004.

Last month, another senior executive exercised his options to buy around 1.1m shares at just under 2p, and then promptly sold half at 14p. If he had real confidence in the business, why didn't he keep more shares?

There have also been lots of boardroom changes, which don't inspire confidence.

Don't get me wrong, I'm not saying that Stanelco will definitely fail. It may be a great success in the end. But I'm not tempted to buy now.

yes - very true !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!



What's more, Ian Balchin, Stanelco's vice chairman and former CEO, doesn't appear to have been wholly convinced by all the good news. He sold a shed load of shares in the summer of 2004.

Last month, another senior executive exercised his options to buy around 1.1m shares at just under 2p, and then promptly sold half at 14p. If he had real confidence in the business, why didn't he keep more shares?

There have also been lots of boardroom changes, which don't inspire confidence.

I think we have exhausted the discussion overwhy the options were sold - to actually buy the shares so the he could invest in SEO and pay the tax bil etc etc etc

There seems to be a big seller about - every time a chunk of shares comes up at 14.5 - it quickly disappears from the screen.

Ian Balchin obviously didn't have much idea of where his company was heading if he sold shed loads in the summer of 2004 - what price did he get? 4p? Directors don't always get it right and sell at the top.

Frampton, You need to do a bit more reserach on the company I'm afraid. He sold them To Andy Brough's Fund at Schroders to raise cash to cover the court case in the short term. If you're going long or short in a company, please do research in it first or you may lose a lot of money!

Biscuit, I'm not quite sure what you mean? I currently hold no postion, having sold last week, as I believed they would drop short term, which, they have. I will probably buy back at some point.
I'm just commenting on the article ii posted which says Ian Balchin "doesn't appear to have been wholly convinced by all the good news. He sold a shed load of shares in the summer of 2004." My point being if he was doing it because he thought the company wasn't going anywhere soon - which is what the article was implying - he made a mistake because he would have got loads more for them in may 2005. I was suggesting the article was misleading, I was not commenting on his reasons for the sale as this was not mentioned - also very misleading in my opinion.
Maybe you have ii filtered and so took my comment out of context?

Frampton

Sorry - I disagree. I think it shows Balchin was aware of the future potental and took action to secure his part of it. Good on him.

When a share option exceeding 30,000 is taken up one has to pay Income Tax on the Benefit (by 19th of following month) on the difference betwen the Exercise Price and the SP on that day as well as pay the Company the Option Price.

If the SP was 4p, Ian had to pay tax on that amount less what he paid SEO for the shares - as well as pay SEO. Far better to pay Income Tax based on 4p than a far higher SP which, like it or not, happened.

Selling half of the shares taken up makes such an uptake totally self financing. ie Sale Proceeds of half = Option Payment on all + Tax @40% on Benefit (possibly NIC also - not sure on that one).

It then leaves Ian holding half the shares, all fully paid in cost and tax, without putting his hand into his own pocket.

If, as you say, "he made a mistake because he would have got loads more for them in may 2005" he would have had to pay "loads more" Income Tax. Is it a mistake to pay lower Tax and lock in the future potential value for oneself ? I think not.

Smart? I think so.

But what do I know.....

Tony, I obviously didn't express myself very well this morning. I am not the slightest bit concerned about Ian Balchin's sale, it is history and Stanelco has gone from strength to strength since then. I was refering to the article ii posted, which overall seems fair, but I think pointing out Ian Balchin's sale in 2004 as a reason to be cautious about buying now is wrong. It is the person who wrote the article who thinks the Balchin sale is a bad thing - I was just pointing out if someone had been put off by his sale in 2004, they would have missed out on a phenomanal rise in 2005.

Tonyrelaxes,

Good summing up, well said.

My view on the recent RNS, for what it's worth.

Although I still have great faith in SEO delivering, I must agree with those who have stated that their RNS could be clearer. There are many ways to read the following extract...'Current potential placements are expected to lead to orders in excess of 50 conversions with one supplier to ASDA.'

This could ( though I doubt ) mean that there are current potential placements with diferent companies that are not connected with the 50 possible convertions with one ASDA supplier, IE several machines already due to be put on line have been looked at by this other supplier who is expected to order the mentioned excess of 50.
As said many slants could be put on the latest RNS.
Whilst also agreeing that a pre close statement can not give defined figures, details that can be included should have been in plain english.

Frampton

Sorry. I don't read ii's posts these days. I must admit in the past I did waste time thinking them to be helpful, balance and informative posts. Hey hey, life is about learning!

i struggle to understand why the people who are bullish on this stock are squelching and ignroing people asking genuine questions about the valuation of the company, it seems to me you are sticking your head in the sand...very bizzare.....signs that you are too attached to this...

The Green Mile Walk to 10p plods on.

Grow up child

Daz England - 20 Dec 2005 19:12 - 13861 of 13861
Grow up child
-------------

Masterful post full of intelligent obseRvation, mature cognisance of the company in question, in total control of his mind set, the DAZ Man is a genius , just breathtaking.
Mind you I think the fact thaT I was right about 14p today might balance his awesome rhetoric, but what do I know compared to such a giant of investment?.
I give you the thoughts of DAZ man, bubbles in the bath????

ROTFFLMFAO!!!!!!

Bosley - 7/8 months to go on the Asda deal, thanks for the info. I have sold my entire holding for just over 60% gain, looking to buy back at around 12p.

Ah yes the explosive one who threatened that selling below 30p would be fatal, what a bunch of losers.