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stanelco .......a new thread (SEO)     

bosley - 20 Feb 2004 09:34

Chart.aspx?Provider=EODIntra&Code=SEO&SiChart.aspx?Provider=EODIntra&Code=SEO&Si

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


cynic - 03 Dec 2006 10:11 - 22783 of 27111

but of course that means diddly-squat as far as SEO is concerned, other than a tiny straw in the wind

greekman - 03 Dec 2006 10:28 - 22784 of 27111

qtheman,

It IS relevant. If Starpol 3000 is approved or not, either way it will have a significant effect on the sp. How can it not be so.
Are you saying that the result will not effect the sp significantly.
But I do agree they still have to sell it for any long term sp effect.
You state that telling us all the dross caused the sp to reach 30p.
That statement alone shows that no substance news (dross) can effect the sp, so with that in mind the results of approval or none approval, being a fact of substance would obviously effect the said sp, so an RNS would be obligatory.

Greek.

bhunt1910 - 03 Dec 2006 14:22 - 22785 of 27111

Is this new news or old news ?

" Stanelco Plc (www.stanelco.co.uk) announced its jointly owned subsidiary Biotec will commence commercialization of STARPOL 3000, a multi-layer, biodegradable, rigid, starch-based packing material marketed as an environmentally friendly, cost effective alternative to APET and Polypropylene.

Emphasis on the ..."Start commercialisation ........"

qtheman - 03 Dec 2006 14:31 - 22786 of 27111

Nope, FDA approval would have no other effect on the SP other than a day of maybe 0.2p increase at most and would go by the following day so no need to tell the market IMO.

EDIT:- and from another poster on here who touted timings some time back I believe that FDA approval was granted for Starpol3000 up to a month ago but again IMO SEO will not issue a RNS and will only tell us when they sell the stuff. I believe if nothing else SEO have learnt to only tell the market hard facts.

PS, while recognising that a 0.2 increase is pretty drastic, the point being it wont be sustained on the back of news that yet another product has gained FDA approval when they have sold jack shit 1000, 2000, frogpack et al.

Falcothou - 03 Dec 2006 16:32 - 22787 of 27111

The FTSE all share index is re ranking at the close of business this Tuesday the 5th. Tracker funds will be buying and selling based on market cap..Is seo going to get relegated at it's current cap ? And if so will it be in the management's interests to release a RNS prior to this to prevent relegation or has the sp dropped too far to make any difference?

garyble - 03 Dec 2006 20:40 - 22788 of 27111

Falco,

It made no difference to the sp when it entered the FTSE smallcaps, so I assume the same effect when it drops out of it!

Q,

Starpol 3000 had not been approved by end of Sep 2006. When the FDA page is next updated we shall see what has been approved up to end of Nov 2006.

EWRobson - 03 Dec 2006 21:15 - 22789 of 27111

I seem to keep banging the drum about Schroders but I will amplify my comments in response to oblo. I am very confident indeed that Schroders is not just as a short term investment. This comes partly from a direct knowledge as to how Schroders operate. My reading of the situation is that Warner (probably plus Wagner) went to Schroders some months back when the scale of SEO's funding problem became apparent. By the time we get to the share launch on 9th Octoner, Schroders will have done a due diligence and will have approved, if not authored, the terms of the offer; the fact that Schroders were behind the offer would bring other institutions in. The success of the offer was quickly followed with the announcement of Schroders holding, directly and via funds under their management. Schroders will have an active investment, directly via the board, thus the courage to sack the two directors directly blamed for the fiasco, possibly also via consultancy as the act is put together. I can't see any other valid explanation: (a) for a sensible formulation of fundraising; (b) for institutional support; (c) for the sacking of the directors. If it wasn't Schroders it would have to be another such organisation but, if so, who? and there are not many parallel firms with the technology background.

Schroders should therefore be in for the medium term, clearly partly to make money from shares, but also to bring the company to profitability and stablility. Their involvement could lead to a sale or a management buyout but could also leave a profitable public company. They are not primarily concerned with the sp but could well have a market cap. in mind which ends up being the same thing. Remember that an sp of 10p is equivalent to an old sp of 30p.

This is why I raised the comment about averaging down. Its partly to correct the mindset: if you have, say, 100K shares which were worth 10K at 10p they are now worth 1200. Triple the holding to 300,000 then they will be worth 10K again at 3.3p. The cap will be the same as it was when you held at 10p (adjusted by subsequent dealing costs). The benefit of doing this is really psychological, but it does mean that you have a much more realistic chance of breaking even and moving into profit.

Let me say it again: new era, no RNS that is not substantive, Schroders in for the medium term, share to be re-rated as credible for institutional investment, but still: - potential for major movement on announcement of contract wins in the new year.

Eric

bhunt1910 - 03 Dec 2006 23:44 - 22790 of 27111

so - no one knows whether the commercialisation of Starpol 3000 is new news????

- like getting blood out of a stone on here tonight!!!

oblomov - 04 Dec 2006 07:08 - 22791 of 27111

Baz,

Its old news I'm afraid. Posted on the 29th, May here:-

http://www.naturalproductsinsider.com/articles/476/476_652online06.html

greekman - 04 Dec 2006 07:17 - 22792 of 27111

qtheman,

I think we will have to agree to differ.
No doubt if/when approval for Starpol 3000 is granted we will see, re the sp effect and RNS or not.
Greek.

oblomov - 04 Dec 2006 07:30 - 22793 of 27111


Greek,

Wrap 100 received approval back in May but we all know how the SP has fared since then.

I agree with Q. It isn't approval that is going to raise the SP but sales. No great sales of Wrap 100 reported - where are the deals with Perseco, MacDonalds, etc?

Starpol 3000 approval could be a similar damp squib if SEO dont get off their backsides and get out there and flog it!

greekman - 04 Dec 2006 07:38 - 22794 of 27111

Ob,
I fully agree, as my previous posts state that even if approval for Starpol 3000 is granted, it's the selling that is the be all and end all.
I was just saying that on news of the decision, the sp will move in my opinion sufficient to cause an RNS.
Again we will have to agree to differ or it will go round in circles.
Time will tell as they say.

bhunt1910 - 04 Dec 2006 08:19 - 22795 of 27111

Thanks OBLO - looking at that article - why are all the other articles posted on the same page dated December 2006. - It was the same article that I was looking at - but did not spot the date at the top of the page - just seems strange to have the whole of the front page dedicated to OLD news - ????

Oilywag - 04 Dec 2006 08:29 - 22796 of 27111

Baz what front page are you referring to?

The oily one

Ignore this post. Silly me!

oblomov - 04 Dec 2006 08:33 - 22797 of 27111


I think thats just the page you're 'entering' the site at, Baz.

If you go to the home page at http://www.naturalproductsinsider.com/

you'll find the current news. Part of each page, including the archived articles, also contain new items. Confusing!

oblomov - 04 Dec 2006 08:50 - 22798 of 27111


Eric,

Haven't we already been here with Fidelity? Fidelity have been investors
in SEO for some time - perhaps someone will know how long, maybe 2-3 years?

They would also have done their due diligence and quizzed SEO, I've no doubt. They presumably believed what most of us believed - that SEO and Greenseal in particular had great potential. I believe Fidelity have reduced their holding - I'm not sure of that, again perhaps someone can tell us.

Point is, Institutions are no great guide, they frequently get it wrong - look at unit trust performances and you'll see a high percentage show losses. I know that from painful experience!

I don't quite follow your maths on the SP - but my maths tell me that even with averaging down my prospects of making a profit are unlikely.


stockdog - 04 Dec 2006 10:40 - 22799 of 27111

Averaging down is no more than psychologically cosmetic. The loss on your earlier investment is still the same loss. Investing more at a lower price must be based on an objective assessment of whether you would buy some now regardless of your previous investment. The only real advantage is that you probably know the company better than most by now and should be able to gauge a fundamental turnaround, or maybe a chartist's support level.

Perhaps what I can accept is the concept of "substituting down". You buy a sexy looking share at 200p which promptly falls to 150p over the next few weeks. You remain convinced of its fundamental mid term prospects and feel a floor has been reached, so you buy in (same amount). You are proved right and the SP rises back to 200p over the next few months. At that point you sell your original holding and are left with a larger number of shares for the same original cost showing a nice profit - real and cosmetic reward. Of course, LIFO rules mean that you actually sell the original number of shares bought out of the second lot bought - but the maths still holds true.

On the other hand, why would you not now want to run both your holdings for further gain? Same rules apply on selling as would appply if you had only invested once and were now showing a healthy gain - is there a better oppportunity elsewhere or are dividends for your holding just around the corner.

The truth for SEO is that the decimated (does that mean reduced BY or TO one tenth of ones strength? - anyway you know what I mean here) value of my holding would without doubt have a more reliable chance of climbing back towards its original cost in many other stocks. I've held for the gamble (no more) that a quick lift back to, say, 5p (a tad over half my average cost price) occurs on the back of the new investment, institutional shareholders and new management (or less old management anyway).

How long should I give them? Nothing has happened yet except more confusion about the management and no follow through to the prospective developments on the basis of which presumably they persuaded the majority of the fresh investment. I know these things take time, but time risk is as important as value risk when it is linked to a company with a creditable record of greatly diminishing value.

Or am I "tucking away and forgetting" them for 5 years at the end of which time they may be worth nothing or 10 X - a 58% pa compound return from where I am now, not at all bad (althoough only a 2.7% pa compound return from where I started)? To make 10 X after even 10 years is still a 25.89% pa compound return - pretty much my overall target for my portfolio.

Excuse the digression - haven't been out for much of a ramble lately.

sd

potatohead - 04 Dec 2006 13:41 - 22800 of 27111

.0075p not to long to go now..

garyble - 04 Dec 2006 14:46 - 22801 of 27111

That maybe so D@$khead but I really cannot stomach that sort of puerile nonsense.........SQUELCHED!

nyleve - 04 Dec 2006 14:49 - 22802 of 27111

I second that - what a pratt.
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