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

In simple terms it appears degradable bags refers to plastic based with additives added to encourage degradation. Biogradeable appears to mean, made of total biodegradable substances, IE natural. ( Got a Z minus in science... bet you have never heard of that one....so any boffins out there, don't shoot me down ).

An A* for you GM!
kim

Cheers

Greekman - if thats an approximate estimeate - I would hate to see what happens when you start providing accurate figures !!!!

Just for fun

The figure was wrong - I used one when no-one was watching!

So would I.

There appears to be some confusion and a few social barriers to overcome with regard to biobags:
http://www.naturalmatters.net/article.asp?article=418&cat=12

"Biodegradable bags have been touted as the solution by some. Tesco's spokesperson informed me that all of its shopping bags will be biodegradable by the end of the year. These new bags will begin to degrade after just 60 days. No more unsightly bags flapping on overhead wires then. It sounds like the perfect solution but, again, INCPEN and Friends of the Earth are in agreement. "Biodegradable bags are made from polythene and starch," says Friends of the Earth. "When the bag is buried after being thrown away, the starch molecules in among the polythene are broken down by bacteria. The bag, therefore, disintegrates, but the polythene does not decompose. Some retailers use them to project a "green" image for their company"

It appears that certain key people need to be made aware of the differing biomaterials available as the perception appears to be that they're based on petro-plastics.

Not sure if Tesco used the term "degradable" or "biodegradable" but as mentioned earlier there is a difference:

Degradable Bags

Bags that can be broken down by chemical or biological processes are described as degradable. Intuitively, degradable bags are expected to be environmentally friendly and a number of retailers are actively pursuing this option. Thus, there is often some surprise when reports suggest that degradable bags are not such an 'environmentally friendly' option. Waste management protocols emphasise the need to prevent, reduce, reuse, recycle and then recover energy. Encouraging disposal via degradation runs counter to this approach.

It can also be difficult to agree whether a particular type of bag is degradable or not. This could become significant if biodegradable bags were to be exempt from the levy.

Types of degradable bags

There are two main kinds of degradable bags 6.

Biodegradable bags are made from natural starch sources such as maize and synthetic polyesters that degrade through the enzymatic action of micro-organisms (bacteria, fungi and algae), essentially rotting down like vegetable matter. However, starch-based biodegradable carrier bags are not available in significant numbers in the UK. They would only be covered by a potential levy on plastic carrier bags if they contained some plastic (some do for bag-strengthening reasons).

Bioerodable bags are made from synthetic plastics (oil-based) with trace degradation initiators ( HDPE with an approximately 3% content of heavy metals such as manganese and iron 7) and, as such, would be covered by a plastic bags levy. They bioerode primarily by oxidation and erosion of the plastic through the action of light and heat until very small particles of plastic remain (these often degrade biologically). It is reported that, in an anaerobic environment, the degradation process is halted for some types of bioerodable bags [ RMIT, Symphony Plastic Technologies].

From: http://www.scotland.gov.uk/Publications/2005/08/1993154/31585

Garyble,

As I understand it some so called biodegradable bags do contain oil based products, but these are or should be called degradable bags. A true biodegradable bag should be made fron 100% natural sources.

This is taken from the BIOBAG web site.

BioBag is proud to be the best selling brand of certified 100% biodegradable and 100% compostable bags
No polyethylene is used in the production of BioBags.
BioBags will decompose in a controlled composting environment in 10-45 days, leaving no harmful residues behind.

Note the comment...No polyethylene, which I presume is similar the polythene.

So it appears some companies do stick to the rules, as I am sure SEO biodegradable products do.

Greekman,

Agreed. The distinction is clear. There is the general term of "degradable" which covers both types. Then Biodegradable for those made from natural starches and synthetic polyesters, finally Bioerodable for those made from oil-based plastics with additives to promote breakdown.

Dont/wont these bags cause problems for the retailer? Imagine an ASDA store over orders and the bags are left lying around in the storerooms past the time they begin to break down. You go to the store, fill you back with groceries and the bag disintegrates in the car park spilling your shopping.

What I mean is, do they deteriorate past a certain time or do they only start to bio-degrade when introduced to the right conditions, i.e. a land-fill site or compost bin?

Oblomov,

When these first came out, I think it was Asda that tried them, I used one by mistake to cover a box in my garage. About 5 to 6 months later, it had fallen to bits as if it had been attacked by moths. It wasn't till that happened I found out that it was biodegradable.

Found on Webwire.

Tesco
5/26/2006 10:56:50 AM

May 26, 2006

Tesco today announced it will become the first UK retailer to move significant volumes of product from road to rail when it introduces purpose-built green trains.

( I know they can mold Greanseal into any shape, but!!!! ).

Seriously though it does show how they are heading for as being as green as possible.

Virtually no sells today.

Earlier this month Fidelity announced a holding in SEO of just over 3%. Today there is an article on a rare speech by Anthony Bolton, described as Britain's most successful fund manager over the last 25 years. There is a graph showing how pe's on growth and value shares have merged to a ratio of 1.5 compared to a long term average of 2.3 and a peak of 4. Bolton's view is that this ratio will grow. Where he has scored over the years is essentially in stock-picking. I note that his holdings in AZM and ASC, two favourites of mine, are over 10%. So it is positive to see Fidelity taking a stake in SEO; on past record they will grow this to 10%+.

Solid end to the week although volumes not large; selling almost completely absent as oblo points out. This suggess that the steam of selling has dampened down and we should get some steady buying next week ahead of the interims; not that the financials will be that significant but it is the end of a closed period and there could be a positive update.

Eric

Evening Eric, I am a great admirer of Bolton and also Richards of RAB Capital.I was interested to see in todays FT that Bolton said last Wednesday of the market in general"I think this could be the end of the bull market ,so corrections could take months rather than days".Maybe I'll get back in on St Leger day.Cold and overcast in Torquay.

mad pad. It is interesting that the investment by Fidelity in SEO (or increase over 3%) coincides with the negative comments about the market in general. The explanation is in the comments on growth v. value shares: he is going for the former, indeed special situations, rather than going by current earnings. Its almost the opposite of current emphasis by some on risk averse stocks whcih heavily discounts future projections. If he is right then there will be a movement of funds into growth shares based on projections of future earnings from the so-called value shares. So, particularly once SEO has passed the high risk stage, there could be movement into such shares whilst the FTSE itself becomes becalmed or falls back.

Eric

EWR, if you rate Fidelity as stock pickers they also hold just under 3% of Chaco Resources (CHP) although they may have bought more in the recent Placing but that has not been announced yet. If they have it will be good news for CHP too.

Does anyone on here know where the company, Belu, are getting their starch based biodegradeable bottles from? Apparently the Independent carries an article on it today stating that it is a first.

I'm pretty sure its Natureworks. This came up a while ago.