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

because it's "almost" completed

You could cynically say that this is an attempt by the management to force some reluctant investors to stump up some more cash

or

that their communication policy remains over eager issuing pointless and irrelevant messages on speculation of what might happen to the company if things go as they suspect

difficult to decide on which to be honest But surprising to see anyone selling as presumably unless you have been asleep for last 6 months you would have either

1. Sold by now
2. Resigned yourself to the fate of losing what little money you had left in the stock -so why sell now?

a little bemused

Would anyone else be surprised if these shares were temporarily suspended, either at SEO's request or the LSE's ruling till this farce is sorted out. Suspension is not always a bad thing, depending on the reason.

'Anyone able to post it here. i am not a member.
Thanks,
Alan '

Slight problem - PM1 doesn't say its a US link - US law doesn't yet have jurisdiction over the UK!!!

http://www.coollawyer.com/webfront/internet_law_library/articles/law_library_letter_of_intent_article.php


stanelco
Site Admin
Joined: 31 Mar 2006
Posts: 621
Location: Jersey, Channel Islands



I guess I might as well post this bit here, it's taken from the third link, and clearly shows Stanelco are on a PLANNED JOURNEY, and cannot discuss the LOI or deal before a deal is signed hence the silence, so if there is no placing announcement maybe the timeline says they won't need one, because the deadline is within the 6-7 weeks of cash burn, and nobody is expecting anyone to back down on the deal ?

Business Functions of a Letter of Intent

Commitment to Each Other and to the Deal: Signing a letter of intent, from a business perspective, indicates that each party has obtained senior management's approval to work towards closing the proposed business transaction and that the parties have moved into a stage of serious negotiations.

Commitment to the Deal for Others to See: After signing a letter of intent, the parties usually issue a joint press release announcing the event. This is usually to provoke a positive reaction in the stock market to the news and some times to send a message to competitors in the marketplace.

Commitment to a Time Line: An LOI will set forth a time line for negotiations, including a deadline for closing the deal and what will occur if the parties fail to meet the deadline.

Partial Performance and Authorization of Expenditures: After signing a letter of intent, parties will often begin due diligence for the transaction and/or preparation of a formal estimate regarding the transaction. Research and preparation of such documents involves expenditure of significant funds for the time and materials of employees designated to perform these tasks. Senior management will usually authorize spending such funds based on signing the letter of intent, although rarely will the LOI specify that there is any way to recoup these funds if the deal does not close.

Confidentiality: If not already agreed to in a Confidentiality Agreement, each party will agree to keep the transaction and information exchanged in negotiations confidential in an LOI.

Come on now, you moan when they don't release anything and then moan when they do. They have obviously issued the statement due to the wailing and panicking of us shareholders. At least we have an idea of what is happening now and are not continuing to speculate away about 100 trillion pound fairy tail placings.

Something is better than nothing.

and I thought I was bemused before oblomov's post

.8p on the cards look at the RNS... no gurantee of take up either, desperate times...

'Fundraising' at 0.08p per share - does that mean on the entire share issue? This isn't a placing, presumably, but a lone based on 0.08p per share.

Well, I'm going to wait for the financing and the announcement of contracts before investing further. Great good luck to Alan who may make a 10% profit on his x,000 investment. But the absolute gain is not worth the relative risk. The overhang of shares issued at 0.8p will only be removed by contract and profit news. So I'll lose out the first few 10% or so of gain, but it will be a sounder investment for all that.

sd

Quick calculation - could this be raising 7.4m approx? Am I a total clown or doesn't this mean (allowing for SEOspeak) 0.08p per issued share?

It means 0.8p per share to be issued.

0.8p

i still can't work out who would be selling on this news given that if the share was held the holder must have given up the ghost already and written off what investment was left. So why does this announcement spur selling unless its from the guys who are going to buy at 0.8p?

Morning all.

Good bit of argument, Stockdog; it doesn't hurt to play safe.

I thought it was unhelpful to say the least that SEO management did not publish any indication of the size of the placing in today's RNS.

However, it seems that the co's financial future is looking safer and rumours of its imminent demise are greatly exaggerated. We hope.

A thought about dilution. If SEO is really raising a full 15 mil as per recent speculation, they'd need to issue 1,875 million new shares, to add to the approx 1,000 million currently in issue. That's 2,875 million total.

If T&G's prediction of a profit of 1.3 million for 2007 comes true, and the SP sticks at 1p, you'd have a mkt cap of 28.75 mil and a PE of 22.1.

Or at the placing price of 0.8p per share, a PE of 17.7.

I'm inclined to wonder if there will be a sell-off and further price fall after the fundraising. I suspect much will depend upon
a.) the size of the fundraising and resultant dilution: their impact upon a fickle market;
b.) the size of the contracts being negotiated;
c.) whether further contracts are likely to follow within a reasonable timeframe or if we return to the uphill struggle that has characterised the past several months.

FWIW - Along with some others on this thread, I'm beginning to think that the management could also do with an infusion of fresh blood.

All IMO, just thinking out loud. Good luck to all who are holding.

Steady as she goes chaps. 2/3 weeks will see a resurgent Stanelco..............or a glum looking Official Receiver. I fancy the former and unless there is an iceberg in the way, we will sail into a beautiful sunrise.
kim

Could be a Greensealed iceberg lettuce of course.
kim

Soul Traders - a post in a thousand, it actually offers some constructive analysis of the facts. To extend your maths a little . .

Say there were further contracts and the business took off a little as we'd all hoped, could it grow EPS by 30% p.a. for the next couple of years to qualify it as a growth stock on PEG grounds? It could easily grow by 100% then 50% pa with profits going to 3.4m and then 5.1m and thereafter by 35%, 25% and 15% p.a over the next 3 years to a profit of 9.9m for a 5 year PE of 2.9.

If at that time a proven growth company might be expected to be fair value on a PE of say 15. Then the SP should rise by a factor of 15/2.9 = 5 tims todays price which over 5 years is not at all bad.

Dreeeeaaaammmmm, dreeeeaaaammmm, dreeaamm, tra la la . . .

sd

It's back to yesterdays discussion. Only 248,906,128 shares available to be issued. These can be used NOW in a Placing but at .8p that produces less than 2m.

They must have more in mind which, if it involves more shares, rights issues, further placing etc will invariably mean obtaining Shareholder approval at an EGM at the end of the month at the earliest.

Facing us Shareholders. This cannot be a thrilling prospect for the Board.
But it gives us an opportunity to blow off steam.

What about a proposal for a change in the Board? Any ideas?

Been a while gents.

I'll ditto SD's views-Also picked up the 15 Mill figure from rumours. I think we'll see slightly positive trading when its announced but maybe only around 1.5p-2p level. I think we'll be seeing some changes in the near future at SEO.

Tony,

Board changes are def on the cards I would have thought-maybe some of the big guns will take a chop.......

SD - not a bad piece of maths on your part, too, but I think I'd prefer to invest in SOLA which is shaping up for a three-bagger within a couple of years and maybe a small punt on AAU or RET which (to my peculiar way of thinking) offer all of the thrills of SEO and less of the downside.

Am still considering a punt on SEO, but everything has to fit and I need to find enough cash down the back of the sofa to pay for a stake.

I still think SEO would need to change the management in order to be able to persuade me that they can produce sustained growth. Their failure to mention the size of the fundraising in today's RNS just underlines to me that they don't have much clue about communicating with shareholders, in addition to all their other fumbles, and that makes me nervous about holding the stock.