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

Indeed.

Hello once again,

I like the way the price is heading back up, I hope it reaches a higher trading range next week, maybe it's the right time for some price moving news to get a new upward trend going ?

Does anyone have the brokers note from 28th Feb ?

I'm not sure there was one JJS, haven't seen anything anyway.

Is this the nowt thread !!!! -

How's it going with Base Group, JJS? Are the MMs still short of stock or did you sell your 4 million?

Highlights of the latest evo note curtesy of PM1 (feb 28th)

STANELCO (SEO.L - 16p - 24p - Buy) - 2005 Finals
>
>Fast-moving picture
>
>These are pivotal weeks for Stanelco. The Greenseal roll-out has been
>hit by niggles but it is now starting.
>
>Progress on bioplastics has been faster. The Company hopes to announce
>production JVs with Wal-Mart
>
>suppliers before mid-year. Ahead of firm contracts our forecasts remain
>only projections, but the opportunity
>
>is more impressive than ever.
>
>Tim Freeborn
the note is very bullish
Lindos

Hello Lindos,

You beat me to it, as I just went to post that on another website, and found someone had beaten me too it there too, but with a bigger summary of the note as follows :-



The Company hopes to announce production JVs with Wal-Mart suppliers before mid-year. Ahead of firm contracts our forecasts remain only projections, but the opportunity is more impressive than ever.

The UK food packaging market is more advanced than the US in terms of technology, but is dwarfed in scale. For instance each year Wal-Marts suppliers use over 75,000 tonnes of plastic to supply just one line of food tray. Wal-Mart wants to go sustainable and to save money.

the projection for FY07 and FY08 could well be cautious. The type of tray mentioned on page 1 require over 500 tray-lidders in the US

Stanelcos bioplastics will work happily with existing heat-sealing units, but Wal- Mart has specified its support for Greenseal as well as bioplastics. Therefore we believe suppliers are likely to support both projects in tandem. The first US-adapted Greenseal unit has been installed at Advanced Technologies, Stanelcos US engineering partner.

(Starpol) Stanelco will supply the plant and the know-how. In return it expects to make a 15% operating margin supplying plastics to the tray-makers. At around 1,500 per tonne, this implies sales per unit of 31m and OP of 2.3m. Stanelco hopes also to negotiate an upfront fee and a small royalty on the converters own sales revenue. We have not factored either of these into our projections.

We have had detailed discussions with one of Stanelcos major US supporters, a household name with sales over 10bn. Its head of packaging research and development rated Stanelco a world-leader in three out of five categories of sustainable plastics. This has given us great confidence in Stanelcos near-term prospects in North America.

The Wal-Mart bioplastics opportunity on its own supports the current share price. It has global sales of over $300bn, including about $100bn of food. Packaging usually contributes 4% to 5% to the price of food, suggesting a global spend of $4bn to $5bn. Even if Stanelco only captures 5% of this figure, its revenues would exceed $225m. On a 15% margin its profits would be nearly $34m, implying taxed profits of about 12m. On merely a 12x multiple (allowing for ramp-up) this implies a value of 144m.

Managing director Howard White controls 23% of the Company, probably a blocking stake. But the Company would make a logical target for Cargill, whose own PLA material is likely to be displaced by the Starpol family.

Thanks JJS - good reading.

sd

VERY INTERESTING READING.
Thanks.
Lets hope for some actual deals soon.
Rumours of a buyout would'nt hurt the sp either.
I hate it when I become attached to a share, but I really do hope SEO reaches it's full potential.
be lucky

The report also confirms the post by ssanebs regarding the fixed tooling problems with greenseal.
lindos

Patience is a virtue.

very similar in reading to the evo notes of last year. that was full of astonishing numbers , too.

chocolat, don't worry. pm1 will save the day yet again !!! ;) speaking of which, jjs ..... what is it with people like you and blinger?

Ssanebs where ,as as a matter of interest,did you get the info that Birmingham University had helped solve tooling problem?Thanks in anticipation.

More interesting titbits:
1: SEO negotiating the construction of 5 "micro-manufacturing" plants
2: $7m to build each mm plant
etc...

Apparently the hope is to cover costs by utilising existing funds and potential revenues.

Snippet of info gleaned from www.proactiveinvestors.com

Thanks garyble
Does it say who they will supply?

The evo note mentioned funding with senior debt

Lindos

What's "senior" debt? I am a senior citizen and hope that it does not apply to us funding the building program!

The oily one

Good afternoon all
my maiden post been in since 4p and watched board with interest
Thought this may be of intrest
CHICAGO (AFX) -- Shares of Wal-Mart Stores Inc. led the retail sector's main measure to the upside in the early going Monday. The S&P Retail Index inched up to 482.33. Wal-Mart shares enjoyed a relatively strong opening, rising 1.8%, or 84 cents, to $47.53 amid a report out of London that the world's largest retailer was looking to hire 150,000 people in China over the next five years.

Hello all three of you,

Busy here is it not ?

I have just read the note at www.proactiveinvestors.com and it contains some interesting information not found in the EVO note. Apparently the author had a chat with Howard, so the information is top notch. The website and all it's articles are free, just register and you're away :)

Senior debt is a loan that is considered 1st in line should the company go into administration, it can also be a large placing, but given that Stanelco have 25m borrowing facility, and Howard says they do not want to dilute the shares any more, then that will cover 8 micro-manufacturing facilities at 3m each, unless Stanelco can get to split 50/50 the cost with the factory.

Things are certainly looking very positive if you add the EVO and PAS notes together.

Lindos,

No direct statement with respect to supply, only mentions ASDA ref: GS glitches and SEO's expectation of having THREE GS machines on full commercial trials in the next FEW weeks.

WM tie-up with regard to SEO being one of fourteen suppliers working as part of the WM Sustainable Packaging Network.

Of course Perseco {and McD} were given a mention.

The item is dated March 2006, so could already be a couple of weeks old.

Garbyle, the number is three if you read the evo note "GS has been delayed by minor glitches. For instance the protective coating on the head suffered overheating, this has now been solved and two machines are being readied for Asda suppliers with another scheduled immediately thereafter a further period of bedding in seems likely and we predict 50 machines by Oct.."

So we can assume 3 now in suppliers or nearly there......

I like the bit one supplier is ready to install 40 as soon as they are ready