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

Oily's still in deep

The oily one

lts a long time since i was a holder and over a 1000 posts ago so l not as up to date as most on this thread : a thread which has among its number many errudite,learned individuals....l apologise. ..Looking at the company fundementally it looks fiscally dire.{ which is self apparent.}. From a chartists vantage point even more dire . Yet at this level i see it as utterly pointless in selling. Returns would be derisory for those who bought even as low as 5p let alone 20p .But you cant ignore the mechanics of a market and today selling outstipped buying by a ratio of 4~ 1 so mms lowered the offer price ato encourage buying and yet selling continued unabated. l thought it was never going to stop. .............l suspect tommorow { Friday } will see more of today ............................................................................. Like ARX before it ,and CDN before that, SEO has proven juste how divorced the s/p can be from the companies true market valuation as a consequence of ramping ,inept research, flagrant ignorance, and mind games played by mms . For those who held at the 26-30p level and didnt sell ignored EVERY basic rule in the book. SSSSHHHH , The stock was sitting on a spike so vertical it was frightening ! and many rational, SANE,reasonable men from this thread planned a dinner when the stock hit 50p ...... ,,,This isnt a case of "l told you so " as i hate seeing people lose monies . lts a case of dont be so bloody greedy next time, and ALWAYS play the percentages !! At best this stock is in for a rocky ride and a definite begging bowl job and @ no higher than 2p causing not only a dilution but massive overhang of stock.....millions @2p....and years among the bargain basement junk stocks....At worst .Temporary Admistration giving it breathing space to sort out affairs . . ..@+ J

It is possible that the sp has now bottomed out, but nothing can be certain.
SEOs position is best described from 4 angles:-

Angle 1.The company discovered a new, groundbreaking way of making food packaging in an all round green way and got very excited about it; with a world wide drive for biodegradable stuff and a general clean up of the environment they thought that they would just have to click their fingers and packing companies would come running to their door.......oh dear, wrong!

Angle 2. From the packing companies point of view:- Mmm nice new technology, it would be good to have a machine and packing material which will conform with environmentally friendly ideals BUT, at the moment we are not required by our Government to use this stuff, the time will probably come when we will have to comply but for the moment we will stick to what we have. Why should we give up time, therefore money, to test new machinery/technology when what we have works fine?

Angle 3, the Supermarkets, desperate to improve on a tarnished image, definitely want to be seen as forerunners in the drive for green techno, saviours of the earth etc. etc. OK there are dozens, or more, packaging alternatives available to them but Stanelco have the best overall package; unproved but highly promising. Asda take the plunge and back SEO, the others sit on the fence to see what happens. Asda persuade a couple of packers to try out Greenseal, which is mediocre at first and problems occur but there is potential. If Asda , and by now their parent Walmart who have okd the association with SEO, had even a slight doubt that SEO could eventually deliver then surely, they would have dumped them?

So where does this leave us? We have the technology, we now have a machine that has been modified, put a few new bits on and actually works. Speed could be an issue but should not be a terminal problem, R&D will be working on that and there should be a solution IF required. We have a machine working flat out in testing and production which will in all probability decide the future for Greenseal; if it works in the way it is hoped, it will become a permanent fixture at the packaging firm using it. If the public also like what they are picking up off the shelves then, bingo! SEO have a winner. Provided this first successful stage is reached orders for Greenseal will start to flow, I would expect slowly at first; I have no doubt that the fence- sitting Supermarkets will take notice and then it will not be long before the majority of pack houses will have to look to Greenseal for their own futures.

Angle 4. Starpol and Wrap 100, a possible scenario:- Perseco persuade McDonalds to trial Starpol and Wrap 100, McD love it BUT they have binding contracts with other packaging companies and until the contracts expire they cannot get out of them unless they hand over large amounts of cash in compensation; why do that when they can wait a bit - just sign a letter of intent and sit back happy in the knowledge that SEO will supply what they need, when they need it.

Ultra violet packing has been mentioned but apparently there are health concerns involved with the technology so I do not see that as a threat. From what I see SEO have the best packaging solution: let's hope they can make it work.

All that has given me a headache so I'm going to bed!
kim

Kim,

Nicely summed up.

The Stanelco Web Site.
The product link to Biodegradable Airbag Packaging is still showing....

This page is in the process of being updated.
Check back soon for full product details.

This message first appeared over 2 weeks ago.
How long does it take to update one page. They are either very incompetent, or something is causing them to delay the update.
What impression does this send out to potential customers.

pity us small investors who dont understand the finer workings of shares viz the erudites on this site. I return to my previous comments - as a layman in essence what has changed about this company and its products?
ps the website team may be on holiday... :-)

They are very incompetent,Greek, I think most of us recognise that by now!

But there are many large and succesful companies being run by incompetent people - incompetence doesn't necessarily = total failure. I hope!

Shares mag advise shorting this stock yesterday and it survived that poke in the eye tolerably well. I would hope that the mgt already know where they are getting further funds from; perhaps a loan from somewhere like Asda since they share some of the responsibility for the late Greenseal roll-out. Whatever they are doing, the impression at the company is not one of panic (which would have been understandable in the circumstances)

'Morning all

Just thought I might be worthwhile me repeating part of my post 19138 concerning a possibility surrounding the fund raising.


"It is my opinion that good times are just around the corner and that there is a strong possibility that one or more big contracts are within the grasp of SEO that will be a watershed in the company's history. The recent RNS mentioned two letters of intent; my sources indicated that there was one. If these events come to pass, the present share price will be history.

Now I am not guaranteeing anything in saying that, there is always a (slight) possibility of an unexpected hiccup in the development of negotiations, but I am very comfortable with my holding. I shall not be adding any more until this expected good news transpires.

Whilst writing this, it has just occurred to me, that it could happen that a contract might be announced before the fund raising exercise gets going. If this turns out to be the case, then the company will not have to issue as many shares as has been intimated on here during the past two days - assuming that that is the route they take - because the price will have risen appreciably from these levels."

What was in the back of my mind when writing the above para., was that the company will have known what effect their fundraising announcement would have on the share price and that they would have to issue many more shares - 100m at 2.5-3.0p would only raise 2.5m but really piss the PIs off big time because of the dilution of their holdings. And if they are going to rely on PIs then they have to be kept sweet and on board.

Another thought. If they are going to announce a contract with beefy figures attached and a clear sign of profits within 12-18 months, then the institutions they tapped up last time, will definitely be very interested in investing more.

Who knows??

Answers on the back of a postage stamp please.

The oily one

Oily, Agree that this seems to be through the worst now, unless you believe the IP is worth nothing and they fold. I do think that there may always be a value to a competitor, so the odds are building in favour of this sp rising rather than falling. It would take a strong constitution for punters to take Shares mag advice and short it at this level; that mag. has a habit of getting it wrong nowadays anyway.

Todays IC page 10,IC view "...Stanelco is now facing financial distress...At 3.9p,the shares are a sell".Who managed to get hold of this yesterday?

If anyone is emailing Martin Wagner in the immediate future, could they please include this link - he may find it useful!

http://www.asdafinance.com/homeowner-loans.html

Paradoxically they really need good news to push any funding option but the good news lessens or cancels the need for funding.

A Rights Issue would silence cries of dilution as it gives all PIs the same % as previously, if they take them up.

Consider this:

If Isoft can obtain finance with the mess they are in - Stanelco have no rpoblem.

Also remember Minorplanet - there's another.

So keep the faith.

Oily.
it's the point I made several dozen pages back. I too believe a corner is about to be turned. I've heard it off too many people in this business and seen the evidence first hand now. So imagine my surprise/anger when i saw the RNS about funding and the drop in SP. I saw this as a blow for the PI's and a buying oppotunity for business. I would like to believe as deal will be in place before any dilution. But I won't hold my breath.
Either way, I'm still holding, If it all comes off I think theres going to be a lot of people pissed off at seo and the way they have handled this.

On this question of finance, finance will be forthcoming if the prospects of deals is good. You either believe the prospects of deals is good or you dont. If you do, no problem - finance will be forthcoming and all will be hunky dory. If you dont, you may as well sell up now.

As it appears from the posts here that most are staying in, I would say most are optimistic that some good deals are in the offing.

It seems to me an appripriate funding solution would be an issue of convertible (redeemable) preference shares with a highish coupon (7.5-8.5%?) convertible at say 5p - or even 8p (the last issue price of shares). This should give all concerned (company, new investors and existing investors) what they want.

By the way, well done TFC - not so much "I told you so" as "I told you not to be so greedy". How like the French to kick men when they are down!

yours

chien d'actions

At least there is blue on the screen at last.
I bought SEO at 6/12/15 and 21p after reading about the company in Shares Mag.
Why have they waited till the price crashed from 30p to under 4p to tell us to "sell", does'nt give you a lot of faith does it?
Come on SEO, make em look silly and reward us faithful - or nutters lol

well , Call me stupid. (i've got a thick skin0.
i could'nt resist the price and dipped in, again, to average down price.
God I hope (for once) my timeings right.
i think a deal, a big promise, a rise and then possibly a placeing.
otherwise:
A kick up the arse from wife, a big sulk, depresssion and drink, lots of overtime and no holiday to disneyland for the kids.
lol

Al, I think your post 19343 talks a lot of sense - even if one can't predict exactly what's going to happen it has an air of level-headedness about it.

WaveyDavey, Your post 19342 on the other hand reminds me of all those people who lost a fortune in the dotcom boom and bust. "Even with all their problems, I can't see why they have dropped so drastically." ???!!!

Read the interim results - the company has net assets of 18 million and very little income, plus apparently endless problems getting its products to market. In spite of this it still commands a market cap of 35 mil, or twice its net asset value. It was heavily overbought, but has now lost credibility with investors, in spite of what I agree is a possibly bright future ahead of it if it can sort out its problems. The stock is now in the process of being sold off in a panic, hence the drop in value. You may think that the selling is now overdone, but there's no reason why it couldn't go further given the negative sentiment.

As The French Connection points out, you need to stay in touch with the fundamentals and have some idea of what the company is worth, otherwise a stock like this could cost you a lot of money.

I don't mean to give offence, and hope none has been taken - after all WDIK so please make up your own mind. Definitely agree with your wait-and-see policy.