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

Thanks beeb. A pretty comprehensive review considering it's shortness! Lends a lot more weight to the splitting of the RF and Starch businesses theory. Encouraging stuff though.
kim

Reckon any demerger is way down the line. A high tech firm is natural bedfellow with a cash cow, which I reckon applies to the starch business.

I know very little about company tax laws but would there be a tax advantage for the company to split? My appologies, shouldn't swear on BB's, sorry I mentioned the T word. T*X, there, that's better!
kim

I'm not sure a one product company which Starpol would become would be something I'd want to pin my life on. On the other hand SEO's IP would have a long hard struggle ahead to market itself profitably. Their combined forces is a soup to nuts offering for the world's largest retailers. No split please.

sd

sd
Possibly the main worry to some investors is, can the company cope with the impending massive increase in the size of the business and are there too many fingers (or not enough!) in too many pies? Fundamentally they are a packaging company with a research and dev department who are arguably the best in the world. I may seem to have indicated that I am in favour of a splitting of the bussineses; had SEO been responsible for all the manufacturing of their products then yes, I would have been but I agree that the whole gels pretty well together for the moment. I suspect they could do with an increase in staff numbers in the near future!
kim

The US webiste is gradually taking shape and now contains links to packaging co's who are licensed frogpack resellers. The us company eldwood rather disappointingly makes no mention of frogpack or SEO on their webite. the uk ones do to varying degrees some have links back to SEO and frogpack - god help us- but most either mention and show the helicopter test or show pics of frogpack and , one other says - Environmentally Friendly Air Pillows
We are proud to be launching Bio Degradeable and Environmentally Friendly Air Pillows to be used for cushioning and void fill.

do we dare assume that we now have quantum and frogpack actively generating revenue. whilst they are not massive cash generators at least somethings are being delivered whilst we wait for bigger things.

barney12345
It still takes ages to load a bugger if you have dial up.

http://www.stanelcoinc.com/

Perhaps someone should chuck a quantum powerball into the PR department to give it it's best ever cleanout!
kim

If you click on the frog it crocks.

kim
The jv method of expanding manufacturing capacity I like very much. It retains quality and commercial control over both PI and manufacture whilst using someone else's capital.

Also, whilst pricing must remain pretty fluid in these early days, SEO have the flexibility to take their profit in either form, finished product margin or licence fee. Perhaps different customers require different pricing mixes.

Once these two elements split, they may well end up competing with each other for the market-available profit element of the combined business. If the material side one, cashflow for further IP development would be stifeld and SEO would soon die. If the IP side one, the ability to generate profitable capacity in material might suffer.

sd

yes i know the site is still cack and slow even on broadband, but it is interesting to see there are resellers who are promoting frogpack on their own websites and presumably manuafactring and selling it.

http://www.networkpack.co.uk
http://www.lightningpackaging.co.uk/products/new.lasso

etc etc


Interestingly they also say that if you want to become a reseller pls contact seo. So the idea that the website is not their shop window is wrong as they clearly hope to attract other rellers of frogpack via the website. If that is the case MAKE THE LINKS WORK......

sd
Yes, well said, and for once competition would not be healthy, I agree with you!

Driver,
not only does the frog croak, the bird sings: I hope the little plop that the names make when they fall in the water is not indicative of SEO's future. Nah, that won't happen!
kim

Driver

You must be the only one with dial up these days!!

The oily one

Oilywag
I havent, I was suggesting that all the companies that are interested in SEOs products a lot of them will still have dial up W/Mart for one as barney well knows.

driver I was not suggesting that walmart use dial up, just pointing out that there are resellers of frogpack actively marketing it, which I for one have never seen before.

still think the site is cack

driver: I am glad that it was laughter that you heard from that posterior! Testing the 14p support level again. Still we have evil knievil onside; is that a good thing I ask, given that he is postulating (not posteriorating) a new market crash in 2006.

Blinger will love that!! lol....

My nickname is "Graveyard".

So should this BB's be.

Anyone with any thought provoking or merely provoking statement to make to stir us all from our petrified slumbers?

As a kick off, I do think that SEO should split the company - Starpol and Greenseal - into two separate entities for at least the next two years. Lets get some significant cash flow and profits from each so that they can be floated with a decent share price. That is, of course, dependent on this action being strategically sound in the light of market conditions, performance and capable management for both divisions existing at the time.

Another thought, if they do split, it would mean representatives from two different companies co-ordinating their activities when trying to secure contracts where both Starpol and Greenseal is required. Surely, with the passage of time, as the products become more established and the recognised solution to alternative packaging and sealing, one person would be sufficient knowledgable and capable of handling both components of the deal?

The oily one

Disagree.
The companies financial position, while not even close to being perilous, does not need the drain of a seperation and the accompanying floats and all the costs associated with that.
With both Greenseal and Starpol, SEO look to me like they have come up with the idea, perfected (?) the technology, and are looking to quietly make a rake off while others do the hard work of selling, installing, manufacturing etc.
In effect, this means that SEO are an ideas company and to create a seperate division or company for every idea could be considered a bit ludicrous.
If Starpol and Greenseal were not aimed at very similar markets, I might agree. If Starpol were packaging and Greenseal were (ie) petrochemicals, then there would be an argument in favour of creating two different research companies, but there is a danger of conflicting requirements when both products are so intimately linked, even though they are not mutually dependant.
If any of that makes sense to you, I can recommend a very good chemist. it works for me.
Alan

Oily - I was enjoying my sleep. I work on the principle, with SEO anyway, that no news is good news - I would become very depressed otherwise! I am content to retain my position in SEO as it stands, don't have a massive holding (60k) with not much incentive to increase it at the moment but I don't envisage any huge fall in the sp, there would be no reason for it now. Having said that, if I have the odd penny or two left in my pocket money I will add as I see no excuse not to! There are a few possibilities with SEO, not least a takeover bid - I think they might be vulnerable to a predator. I don't think they will split the company into Starpol and Greenseal as separate entities so long as they are able to control things as they are but perhaps they might run the R&D department as a stand alone business. If they grow as rapidly as the industry now needs they may well need another partner, maybe BPRG??!!!!!! (Not really)
kim