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 for the update Tony.
Most of that came through on the statement, but its nice to know that was the mood of the meeting.
Alan

I was not able to get to the meeting until 30 mins. after it had started but it seemed as if there had been a few pointed views expressed from those shareholders present. Agree with Tony's take on it # 16268 - ie loads going on but not being prepared to commit to a firm timetable; didn't get the impression that they are looking for money in the short term and more took the point that they hope others would bear the investment costs of the roll out. On the ciggy butt front, Rothschilds are working on a no win, no fee basis; I take that as confidence on their part that they will be successful (don't think they got where they are by being altruistic). My conclusion is that there is still every reason to have loads of confidence in the portfolio of products becoming really good earners. Gven the stage that they have reached, until they earn some revenue and the sp rises, they must be vulnerable to someone bidding for the company's product IP list. Anyone else have any thoughts on that, other than Age of Reason's stake being a potential hurdle or springboard?

AGM TOPICS - (as I remember). I will start now to give you something to be getting on with but will add further things later tonight or tomorrow morning. The words are not necessarily verbatim but the meaning is, as I understood it. These disconnected jottings are rearranged under headings rather than in the sequence. I listened more closely to the areas that I know more about (or thought I did!). At times it was very difficult to hear the quieter spoken Directors against the whirring of the air conditioning. Please feel free to correct me if I misheard/misunderstood anything and you know better.

GREENSEAL and DELAYS
Apart from usual unexpected problems developing new concepts and technologies, delays came about from the extreme pressures on margins imposed by ASDA/Wal-Mart. The tray lidding machines are required to be operating at full speed for 16 or more hours a day, 7 days a week.
This pressure on margins is good for SEO as it makes suppliers really need and want its cost savings advantages (and A/W want them to adopt GS) but does not allow adequate down time to convert and satisfactorily commission machines.
To overcome this SEO have purchased each of the 3 types of machines in regular use (Pro seal. Multi Vac and Mondini) to lend suppliers so there is no downtime to production lines.
Asked if there was to be an extension to the ASDA Exclusivity period (GS, Starpol later) because of the delays, Martin Wagner said this has now been agreed that ADSA will have 2 months Exclusivity following the first commercial installation. [There was some confusion over this that I could not fully hear] ASDA wanted the exclusivity to be able to announce they are GREEN and cant keep doing this more than once.


WALMART/TYSON
They were here last week and visited Grampian Foods being particularly interested in meatpacking. GS passed all their queries and tests including seal failure. Most difficult contamination to overcome with sealing is pork fat. This was deliberately smeared over the seal areas yet GS sealed without failure. This saves wages of 2 operatives on the line as well as the heavy penalties if seal failure goes undetected. These can include rejection of a whole pallet of production if discovered before on the shelves and fines of 30 to 80 per item, depending on the product, if discovered on the shelf or by a customer [think I got this right].

Sorry lads and ladies, beer time now!
Starpol, Starpolwrap, Fag ends, cash, SP, informal chats with Directors afterwards and my deeper impressions will follow.

Well done, Tony. Gives an air of realism. Re the ASDA contract, negative and positive. Negative in that means two months from the end of the current contract period at least, i.e. 1st August, I think. So no roll out in this financial year. Positive in that ASDA (and WalMart) are undeterred and still think this is a winner, both in business terms and publicity. I like the Walmart/Tyson detail. We seem to be getting a picture of actually where things are: slow but sure seems the watchword. Not what the trader wants to hear but the long-term investor is on a winner.

Eric

top post TONY, very balanced, almost feel i was there.

You got a real sense that SEO had learned from their mistakes of last year and were rather niave in the timescales that they could deliver in - Martin Wagner effectively said as much - and his focus is to get 2 or 3 suppliers fully operational over here working 16 hours/day, 7 days /week, without any downtime before shipping abroad. A real focus on quality - rather than quantity.

Also - the 2 month extension was to enable ASDA to really milk the success before it was released to competitors.

On the ciggie front with Rothschilds - its a no win , no fee deal - quite a coup with Rothschilds and Stage 1 has been completed (ie identifying interested parties). SEO said that there had been quite a bit of interest - and they had now moved on to the next stage. SEO made it clear that they were only interested in selling on the IPR to be developed by others (and thus receiving royalties) and could not put a figure on what it might be worth - but it was unlikely to be a news item in the next 6 months.

Many thanks to Tonyrelaxes and Sharesure, for the info. It's looking good. Maybe not ( as several have said ) jam tomorrow, but champers a bit further down the line.
Cheers greek

Tony,

Is it ok if I copy/paste your info on another investment site ( fully credited to yourself ). I will not be offended if you reply to the negative.

Greek

Copy and paste away. No credit required, I don't consider it as my original - it was only what I heard.

As BHunt says, there was a real focus on quality in their approach.

IMO this share will make people rich - very rich - but not in a few months, but in many, many months to come and the years to follow. I believe this and came away far happier than I arrived.

More from me tomorrow.
Tony

Tony,

Thanks. Credit still given as you took time, trouble to attend

AGM TOPICS Continued

CIGARETTE FILTERS
Rothschilds are still investigating this. They are working on a No Sale, No Fee basis which shows their faith in a sale taking place. Work is continuing still proving the patent and material. Biotec are working with Adept Polymers in Warrington on this.
There are several stages so dont hold your breath. Stage 1 was determining interested parties and there has been significant interest." Stage 2 is working with Biotec.

CAPSULES FOR MEDICAL MARKET
SEO took a pragmatic decision to settle the dispute with BPRG. Both can now exploit the patent. SEO will be diverting their resources back to this after GS requires less of their time and resources.

STARPOL
10,000 tonnes of this material will be sold this year with capacity for 20,000 more. There was a question about ASDAs 30-day trial but, again, I could not properly hear the reply.
This can be made from many starch sources, corn, potato and even peas. Peas have actually produced a better product.
Discussions continue with Perseco. There was a qualified avoidance of directly using the McD word in this context, but it was used a lot! It is expected that the micro manufacturing plants will be either inside or alongside the JV partners production facility close to the user market. The use of various starch origins ensures materials are local and not subject to high transportation costs (spuds are heavy!).
Samples of Starpol 2000 and 3000 in various forms were available to inspect. I saw the usual meal trays but also noticed a pre-moulded chocolate box layer separator. Afterwards I was told there was interest in many applications from many sources. I heard many names mentioned. Among those I recognised was Gueest and [if I heard correctly] Nestle.

STARPOL WRAP
There is again interest from Perseco as well as others. A sample was there to see and feel. Looked like a whiter grease proof paper bag I used to get my chips in!

SHARE PRICE
A questioner quoted that last year the Board had been surprised how far this had travelled how did they feel now? The reply was that the pendulum swings too far in each direction. The SP now looks low on the potential.

FINANCES AND REVENUE
The Chairman said he hoped to be earning our own way in 12 months time A Rights Issue is not anticipated. They are trying to fund the JV micro plants with partners money.
Income stream is to come from IP rights transfer, Royalties, profits from JV manufacture, Dividends from Biotec.
They said they could not say too much as we are in a closed period presumably as the half-year ended on Sunday.

DIRECTORS
The full current Board was there, including new FD Clive Warner, except Terry Robbins and Graham Whitchurch no explanations of their absence was offered. After the meeting officially closed I listened to and spoke with Martin Wagner. I saw others speaking with Howard White (is a surname beginning with W becoming a Directors' requisite?). I would be interested to hear what they learned from him.

CONCLUSION?
As I said, I came away far happier than I arrived. Now, after a nights sleep, I will certainly be keeping my investment here and look forward to the months ahead.

Whatever is said, you can't get away from the fact that the share price is still only 13.25p.

Therein lies an age old argument. Do you buy on current value, or potential value?
I would argue that those buying on current value should look to the blue chip divi payers, and everyone should have some of those in their portfolio.
Starpol Wrap excites me. That looks like the easiest and fastest route to the consumer. No special machinery to install or leakage trials. Just a different sheet of paper (simplified but you get the gist).
If I were a betting man then my money would be on this being the subject of the next significant announcement.
If the sp does remain this low, then my next available funds will go here. i am confident for that but I don't wish to liquidate anything else to put more in.
Alan

Borrowed from another bb

A brief resume of my conversation with Howard yesterday after the AGM.GREENSEAL:I asked him what exactly was the problem with the tooling.He explained that the part of the the machine coming in contact with the trays was not up to the job and in a commercial enviroment was wearing out too soon.This has now been redesigned and/or made from a different material ,tested and is working perfectly to expectations.There was never a problem with the RF sealing.An analogy would be you invent a car and put tyres on it ,they wear out after 1,000 miles .This is unacceptable so you redesign the tyres to last 40,000 miles .This particular piece must be sacrificial so it's only a matter of the period of its longevity being acceptable, which it now is.My analogy not his!COMPETITION:I asked him if Metabolix presented a serious threat.He said that he knew all about them and had even been to a presentation of theirs in Philadelphia and reckoned they were about 4/5 years behind SEO.WEBSITE:I pointed out that they may well be 4/5 years behind in innovation but their website was light years ahead .He agreed and pointed out that it must have cost a fortune and that SEO's business was not producing expensive websites.STARPOL 3000:He showed me samples of Starpol 3000 which are 100% RF sealable and 100% biodegradable .It could also be coloured which apparantly is the way forward for many items,ie blue for fish red for beef.Hope this is of some interest.Mad Pad.PS if anyone would like to post this elsewhere feel free.(I don't know how to and can't be bothered to type it again !!!)MP

Edited by mad pad on 03-May-06 at 17:05

Al
Re. Starpol Wrap excites me
I don't think there's much that doesn't excite you but on your point of S/Wrap it would have to be some one like Mc/Donalds for the Wrap to generate enough revenue to get really excited being such a small piece of waxed paper replacement.

Johnny the fox,
Thanks, good info found. Saw the bit about cut/paste permission given by the original poster so will do so.

Evening all

Sorry I have not reported back myself after the meeting yesterday, but have been in bed all day with a terrible streaming cold.

It was good meet bhunt1910, tonyrelaxes, sharesure and madpad and put faces to names.

I shall add my pennyworth perhaps tomorrow when feeling a little more chipper, but for time being, based on the Q&A session and the informal talks yesterday after the meeting, posts made so far by those mentioned above are a pretty accurate reflection of my own recollection and opinions.

The oily one

I know, Driver. The littlest thing has me coming over all unnecessary!!
The wax wraps have a bigger potential than McD.
Every takeaway you can name would have a use for them. As would every butcher, fishmonger, baker and many others as well as the supermarket chains.
Even the manufacturers would have an interest for loaves of bread and such like.
If it is more cost effective than current plastic based wax wraps, as well as more environmentally friendly, then any product that needs protecting from environmental change is a candidate.
This could include anything from fags (can you tell I'm a nicotine addict?) to stationary, to critical archive material.
I stress that this only applies if the cost is lower, and I'm not trying to take PM1's mantle. Just pointing out that moisture proofing, grease proofing and wax paper sealing is far more prevelant than just for wrapping burgers in.
Even so, thats probably all it will ever get used for!!
Alan

All very confidence building. Thanks chaps. I like Tony's 'SP now looks low on potential'. You can't even begin to define the potential. Very interesting that sp has receded again today. I think the short-termers are beginning to give up the ghost. There should be a transition from the fly-by-nights to the longer-term investors. You guys have gone, listened, taken on-board, sussed the potential and come away happy (except for lack of money in pockets). It doesn't do much credit to the majority that they should come away and sell, impatient for a quick fix. But I actually consider that the transition to a re-rating of the stock as a long-term winner will start quite soon, perhaps with a WalMart/Tyson trial announcement or a Perseco sale.

Eric

Eric

Not my 'SP now looks low on potential'. This was a direct quote from Philip Lovegrove, SEO Chairman - a person who has spent a lifetime "in the City" and clearly knows his way around.

He isn't doing too badly at AHT either, look at their chart for the last year or more. Considerably more impressive than a total loss at Regent Corporation 12 or so years ago where he was also a Director, and I had invested :-(

Tony