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

edited out - shaking finger hit button twice!

Nearly ended below 10p as I thought possible last Autumn when I sold out at 21p.
I have no reason to believe that I was wrong to tip this from 5p and on through 20p to 30p due to the huge potential for Greenseal. That was not ramping, I believed the potential but as it was becoming clear that it was not being delivered and when the next big hope, Starpol was unveiled, I got out at 21p.
Regular posters on here were surprised and some had a go but it was my decision, I wanted to see something delivered before re-investing and so far nothing.
SEO has been on my watchlist ever since I sold out but I have no reason to believe that I should get back in just yet. Why? well you have to ask questions of the management IMO. After my exit, the sp nose-dived to 12p with quick support and recovery to 17p helped by a T&G brokers note where the management still expected to complete 200 conversions by July 2006. Surely the problems were becoming evident?? In the last year there have been more advisors than conversions!! You have to remember the meteoric sp rise was due to massive potential royalties from Greenseal and whilst Starpol has some potential the profit will be based upon the film being competitive with existing polymers and only IF is meets the technical specifications. Many materials currently used have gas barrier properties to maintain product shelf-life and I remain unconvinced that PLA based films will be able to achieve the requirements of many applications for fresh foods.
Reduced shelf-life would mean reduced profits with increased waste.

However it should be OK for applications such as burger cartons etc as a replacement for PS which is difficult to dispose/recycle and if approved here the potential sales are high, but what will the profit per tonne be?

My own view is that current sp is cheap IF the potential for Starpol can be delivered, if not then the share is over-valued and next support level is 6-7p.
This week has been extraordinary, the London Bombs had less of an affect than the potential interest rate increases across the pond, many fundamentals of UK small-caps are unchanged so reduced sp's are bargains but SEO has no fundamentals almost 18 months after huge profits were on the cards.

Good Luck to all in SEO, I fear that you may need it but if the reward does eventually come then those holding on will certainly deserve it.

I am the same as you, Lordelpus - read more than I post - and the last few days have made horrible viewing - a huge red screen, all week. The World Markets are ALL trading DOWN ATM so Stanelco is merely following the TREND. "The trend is your f[r[iend", alright!

IMO: the ONLY way the sp will now head north is if/WHEN the next decent RNS is made. Until then - absolutely NOTHING positive is likely to happen, I'm afraid. Not good.

Thanks, Andy. Respect your opinions which demonstrate good perspective on the packaging field. How do you see the Walmart dialogue including the recent Walmart/Tyson visit to see Greenseal? That trip must have been based ion positive feedback from ASDA. The other potential early news related to Perseco. What do you see as the shelf-life constraint of Starpol? Meat is only on the shelf for a short-time so does any such effect have any relevance? When do you see the joint venture manufacturing units making an impact? - although re-reading the chairman's statement tends to suggest that these are not imminent. Finally, surely the know how and patents of SEO would be worth a significant sum to a company who can exploit them more effectively.

Eric

Eric, have to confess to not following all developments as closely as I did but a few days shelf-life can make significant differences to profits.
When SEO thought that Greenseal did this, RNS's were issued, if Starpol (PLA) does not match current barrier properties then it will need a really commited retailer to adopt it and manage the logistics and product stock control.
I am sure that Walmart/Tyson see potential but until we have a deal that is all that it remains. McDonalds type applications remain the best bet.
Of course Starpol may beat all previous PLA's and have good and comparable gas barrier but then I would have expected to see results from SEO?
SEO's patents are good if they can become profitable products but who will buy them at this stage for 90m+? Profits need to be generated.

I still expect the next RNS to be FDA approval of Starpol 3000,see AGM statement of 2nd May,but I cant see that shifting the share price north.

Reading the AGM statement again this morning and the posts above, I feel the next RNS statement could be slightly better than the FDA approval Mad Pad suggests.

We could see an announcement of the Walmart trials mentioned in the RNS - see below. We could also see an announcement relating to Perseco - see below.

Announcements relating to both of these must surely be imminent given that the Walmart trial details would have been agreed in the week of the AGM and the Perseco meetings took place in the following week.

Either of these could lift the SP and stabilise it.

The more I read the AGM statement the more positive I feel - Stanelco are in very advanced discussions with the right people. If the product works and is protected by patents it should succeed. If I were coming to the share fresh today I'd still invest. Difficult not to be impatient, but I do feel that most of the pessimism on the BB's over this week is due to just that - impatience. The SP has fallen because of the effects of the market in general - not because of any bad news since the AGM.



From AGM Statement 2nd May 2006


The meat area at Wal Mart has been identified as the first area to trial Starpol 2000,3000 and Wrap products. Further discussions will take place during this week to clarify trial details.

On 14 December 2005 we announced our agreement with Perseco, the international leader in packaging and supply chain services to the food service and beverage industries. We have a number of meetings in the US next week in order to move our exciting project in the fast food sector forward, in particular to endeavour to finalise details with regard to vertical integration into their supply chain by establishing Micro Manufacturing Facilities.

Oblo,hi.What worries me is such statements as"to clarify the trial details"ie the trials have not even started yet ,how long will they take?6 months ,a year and will they be successful?The 2nd paragraph,for my taste, is far to general.I don't believe the share price will go anywhere fast now until we get news of deals with concrete +$$$ attached.Last year it may well have shot up on the mention of Wallmart but not anymore.Anyhow I sold last week along with 80% of my equities having had a cracking run in the last few years,maybe sell in May buy in Oct will be correct again this year.I certainly know more about SEO than any other share I own and as soon as I SEE THE RIGHT SIGNS will reinvest maybe even to the tune of 10% of holdings but for now feel happier in cash.Best of luck to those who still hold.

oblomov
There's not much left of my AGM statement I hanged it up in the bog and I have been using it for you know what.

Those that are still in and that includes me, there must be no point of selling now as I said a few weeks ago put them in the draw and wait, the company's not going to go under, we know the product potential is massive so over the next few months even if we don't get any news the sp will recover back to 14- 17p on rumour alone while we are waiting, if it goes any lower so be it top the bloody thing up and put your fingers up.

oblomov are you looking at the chart at the top of the header the s/price has been in a downtrend since last may with a nice bounce in nov/dec my own view is without the sell off in all indicies ,this stock would still have gone down.

sorry hit button twice

Mad Pad, Hi, you'd think we'd have better things to do on a weekend, but here I go rambling on again!

Regarding the timescale - given that we are talking about radical new technologies and considering SEO's size, It would be a little naive to have expected everything to go smoothly and within specific timescales, IMO. However, I think that's exactly what investors did expect, hence the dissappointment and decline in the SP.


The second paragraph is pretty specific - 'to finalise details with regard to vertical integration into their supply chain by establishing Micro Manufacturing Facilities'. To 'finalise details' suggests there are takers for the Micro plants and that they are close to signing deals. 'vertical integration into their supply chain' speaks for itself.

I believe once we see positive RNS's relating to these specific items the SP will rise, investors waiting for the deals to actually be signed will miss the boat. At the point the deals are signed the SP will rise dramatically and instantly. You wouldn't have a chance to get in at a reasonable price. A strong indication that deals very likely will be struck will do the trick, SP wise.

IMO. But then I'm long, you're short!

Agreed, Driver, but I do feel that AGM Statement to be crucially important, in the short term at least.

If the market doesn't receive clear news from SEO on the points made in that statement (particularly the two I've spoken about), and within a reasonable time, SEO will lose all credibility.

oblomov
I never said the AGM Statement wasn't crucially important it's just the best place to read it.

WOODIE

It was actually fairly stable from around last November till last week. The last week has seen a sudden drop, far more dramatic than the fall since last May.

It would have gone down after the AGM Statement if there were reasons other than the general market fall behind the drop.

I'm confident it has gone down with the rest of the market. Show me a small cap that didn't. (God, I bet you will now, but I haven't noticed any, lol.)

Driver, thats the best place to read anything!

oblomov
Stop lowering the tone.

Oblo Its not that I don't believe in SEO ,but for reasons I stated earlier , I'm risk adverse at present and it had to go along with most of my shares.If there is A1*****news then there will may well be be a spike followed by a correction ,then I will buy back.

Andy,

Taken from Interims last year:
"The initial focus will be on the North American market, where polypropylene is widely used for food trays and where there is increasing demand for biodegradable packaging. Starpol 2000(TM) additionally provides a stronger gas barrier for modified atmosphere packaging (MAP) which helps to lengthen shelf life. Sample product has been manufactured and discussions have commenced with major retailers"

It would appear that there is an improved gas barrier with Starpol.....unless SEO are simply wishing it to be so.

Comments made:

andysmith - 19 May 2006 22:30 - 16733 of 16752
.......Many materials currently used have gas barrier properties to maintain product shelf-life and I remain unconvinced that PLA based films will be able to achieve the requirements of many applications for fresh foods.
Reduced shelf-life would mean reduced profits with increased waste.

However it should be OK for applications such as burger cartons etc as a replacement for PS which is difficult to dispose/recycle and if approved here the potential sales are high, but what will the profit per tonne be?........

and:

andysmith - 19 May 2006 22:59 - 16736 of 16752
Eric, have to confess to not following all developments as closely as I did but a few days shelf-life can make significant differences to profits.
When SEO thought that Greenseal did this, RNS's were issued, if Starpol (PLA) does not match current barrier properties then it will need a really commited retailer to adopt it and manage the logistics and product stock control........

I would presume that Starpol 3000 is an enhanced 2000, ie similar properties but clear.

I get the impression that the management is pretty switched on, so should not likely make the same mistake twice. They've been through the mangle with ASDA and I would expect them to be alot more specific with Walmart and that would include the actual value of the deal with milestones.

As Tyson was also involved, I'd expect a rapid trial and take-up, along with timely updates.