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

explosive - 02 Oct 2006 19:26 - 20593 of 20595
Well said Tony, if your not in SEO or have definatly made up your mind not to be in then why bother posting. The only long term person who saw this coming was blinger, like it or not.


There were plenty who saw what the blind couldn't see.

Alan,

I must admit that after having one of those really lousy days, reading your third option bought the smile back...... Some bugger has been caught with his hands in the till.

I thought your second option more likely but it's not so humorous.
Cheers Greek.

A bit dated, but I think it explains the "price monitoring extension" quite well:
http://infoex.hemscott.net/MESSAGES/894334.HTM

"Posted by Bye'ek! on 25/September/2001 at 03:26:

don't know diddly like me.

Meantime..owww.please don't give us ludicrous mark ups this mornin MMs!

"LONDON (FTMW) - Ever wonder why London stocks stop trading at 4.30 p.m. but prices jump more than 5 minutes later? Go deeper


The reason is the use of a closing auction process at the end of the normal trading day.

The London Stock Exchange introduced the system in May 2000.

"It is generally seen as the most efficient way of discovering the closing price," the Stock Exchange's John Wallis told FTMarketWatch.

The process is in use across much of Europe. Indeed, the mathematical algorithm used in London to calculate the closing price is a European standardised one.

Auction nitty gritty

Throughout the regular 8 a.m. to 4.30 p.m. trading day there is automatic execution of trades in SETS stocks. SETS is the Stock Exchange Electronic Trading Service, otherwise known as the order book.

At 4.30 p.m., automatic execution finishes and the market moves into the auction period. The initial auction period runs for five minutes, during which time market participants can place both market and limit orders.

A market order is one without a specific price attached, which will be executed at the best prevailing price. A limit order is one that has a specific market price level attached to it.

A mathematical algorithm is used at the end of the 5-minute period to calculate a single closing price for the auction, calculated to be the price at which the greatest number of shares can be executed.

During the auction process an indicative closing price is displayed to allow market participants the opportunity to adjust their orders.

"Almost all the time, the auction process will be completed by 4.36 p.m.," said the Stock Exchange's Wallis.

Price monitoring extension period

However, there are two sets of circumstances under which the process can be extended by one, or if necessary two, 5-minute periods.

The first exception is a price-monitoring extension. If the closing algorithm calculates a price that is more than 5 percent away from the average price during the last 10 minutes of normal trading (4.20 to 4.30 p.m.), the auction process moves into a price-monitoring extension.

Much of the demand on a "normal" day for the closing auction will be from institutional participants, such as tracker funds that wish to execute market on close type orders.

The volume of participation by these players tends to be heaviest at the end of the month or quarter, and on the days in each quarter when the FTSE indices, such as the FTSE 100 [UK:1805550] are re-weighted.

If the demand to buy or sell at the close is sufficient to move the price outside the 5 percent band, then the price monitoring extension period allows time for liquidity providing or opportunistic market participants, such as market makers, to enter orders to balance the market.

When the auction process was introduced last May there was initially a single 5-minute price monitoring extension period, but a second period was introduced in November 2000 to allow the market more time to close if required.

Market-order extension period

The second type of additional auction period is a market-order extension. If at the end of the 5-minute auction period there are market orders left unfilled - i.e., orders that are to be executed at best price, but there is insufficient volume to completely execute them - then the auction process trips over into a market-order extension period.

In general, the occasions when there is a market-order extension coincide with days when there is a price monitoring extension.

And I used to think everyone stopped trading at 4.30 p.m.

Vince Heaney covers markets for FTMarketWatch in London. "

Bri"

I was/am curious as to why the two trading statements so close together:

17/08/06: Running out of cash; looking at options; 2 letters of intent which should lead to contracts.

08/09/06: Running out of cash; looking at options; contracts being finalised.

maestro is the original conspiracy theorist. he believes the US never went to the moon and the US blew up the twin towers themselves.

The Welsh got to the moon first but there were no Pot Noodle deposits there, that's why we came back and started mining for noodles in the valleys, isn't it?
Garyble, thanks for the info, it is actually a bit clearer now!
kim

Sphere says Stanelco no longer plans to license Biotec IP to US Starpol resin JV
AFX


LONDON (AFX) - Stanelco PLC is no longer planning to license Biotec GmbH intellectual property to its planned US joint venture for the compounding of Starpol resin, according to a statement from Sphere SA, which is Stanelco's joint venture partner in German biodegradable compound maker Biotec.

This follows discussions during the last two weeks between Stanelco and Sphere.

Stanelco has signed letters of intent with two parties over Starpol resin for the US market. Starpol is a biodegradable packaging material.

So tell me is this good news - have SEO been negotiating themselves out of this JV so that they can replaace it with another order/deal ???

Dunno.
Any ideas, anyone??
I'm at sea with this one. My first reaction was that the Biotec JV must have been interfering with the US negotiations, I just cannot see how.
Alan

Heres a thought from left field.
Could it be SEO are planning to dump their holding in Biotec, to raise cash??
Could it also be that someone got word of that yesterday afternoon, placed a silly large order on the books and that caused the extension?
Just a thought.
Alan

Still half asleep, but my instict tells me that Biotec is now the lifeblood of SEO, so to sell them would leave the company with a much smaller portfolio. I am half asllep though!
Kim

Looks like Sphere has blocked SEO's plans! I interpret this news as a major blow. If SEO cannot license the production of Starpol, their only option would be to produce it themselves!

I can't see SEO willingly dumping Biotec as Starpol is the money-spinner. Could be that Sphere have been very shrewd and ruthless, not only wanting a secure, "cheap" supply of their raw materials but also, knowing SEO has its back against the wall, now applying the squeeze to acquire Biotec outright.

Well the RNS is very clear in what it states, but what the hell does it imply.

To my mind it could be good or bad news. Typical SEO PR. Presumably they will give an explanation later today (we can but hope).
The clue will be the movement within the first few mins of the market opening.
No doubt those who understand these things with far greater knowledge than us, will be trading like mad. Also will be interesting to see the opening price. A day to keep your eye on the MMs.

Editing my earlier post as I dont want to depress anyone! But I will say it was gloomy and I am changing my stance to a rather less optimistic one, to say the least, after this latest news.

First strike to the buyers. MM's seem to be scratching their heads as well as their balls this morning!
kim

It's not an RNS - it's an AFX news agency story, seemingly originating from Sphere rather than SEO. My guess is Spehere have said - Oi, you can't licence our joint IP without our permission, which we refuse.

This may be the major cause of the delay in turning the LOI's into contract.

What a screw up in negotiating the sale of 50% of Biotec to Sphere without keeping a free control over their own uses - if that is the case.

Only guessing. Whatever, sounds like major bad news to me.

Perhaps this will trigger a proper RNS - kill or cure - frokm SEO itself today.

sd

Stockdog,

Re AFX not RNS, my error. Was in a rush so just concentrated on the content.

SD,
SEO have a golden share in Biotec. Whenever there is a dispute SEO have the final say. My guess is that the companys they are negotiating with want to use natureworks for the starch resin. Thats just my guess and I hope its cleared up soon.
Alan

Only guessing as we all are. But why would Sphere refuse permission, or stop SEO from licencing the product when if licensed with high volume sales it would generate a great amount of cash for both.

Just another silly guess - maybe Sphere have said they want to use their manufacturing capacity to make Starpol for the US market - do they have such capcity. I guess being a manufacturing company, they could tool up as soon as any JV in US.

Thinking of selling my entire holding and sticking in pin in the racing gazette - I have more in depth knowledge of those probabilties than SEO just at the moment!

sd

Just re-read it.
No longer plans to license Biotec IP to its JV partners in the US.
Biotec has many items in its IP portfolio. Perhaps the original agreement with Sphere said that SEO must license all the IP or none at all, the US JV partners are not willing to pay for the entire range and stalled negotiations, SEO have gone back to Sphere and said we are not going to license the other stuff, Sphere have kicked off, SEO have said tough, we've got the casting vote.
My point is that is does not say Starpol resin is not going to be licensed.
Still lost.
Alan