bosley
- 20 Feb 2004 09:34
Chiva20
- 24 Mar 2005 13:06
- 2289 of 27111
Thanks Di - on a steep learning curve :o)
EWRobson
- 24 Mar 2005 13:17
- 2291 of 27111
Chiva
A couple of points about the relatively small price rise. First, the actual revenue projection from the deal at 5m in first year is not that big against some expectations. That can be qualified by statement "significantly in excess". There is no mention of royalties but on previous statements they would ruun at 75% of revenue figure in each suucceeding year. Also, ASDA refer to several hundred machines being adapted. 5m can't be more than 200 machines at 25K a pop.
The other point is that the market is generally against the small caps. One explanation is that there is a lot of propfit taking ahead of the year end. Markets are likely to be tight next week because of Easter hols.
What is likely to happen to the sp over the next few weeks? Short term profit taking could offset buying. However, there must be a significant flow of news stories which will bring in new buyers. We should also get updated and improved projections from advisors. There is nothing in this announcement that could be said to be unexpected so you could argue that the good news is priced in. However, the main argument for a rising sp is that SEO has broken through and that news flow from here on will all be positive. Unlikely too that there will be need for more funds with a nice early cashflow from ASDA. All these suppliersw will supply other supermarkets, etc though presumably with other machines. So Tesco, etc are going to be lining up for quick action in 12 month's time. Could tehre be a better emerging comapny scenario on the market?
Eric
kshammas
- 24 Mar 2005 13:24
- 2292 of 27111
Incredibly tight spread at the moment, 17.53 sell and 17.65 buy in latest trades. Any more experienced investors like to take a guess at the reason for this? My primitive mental calculator estimates that at about 0.66% practical spread! This seems very small to me?
bosley
- 24 Mar 2005 13:31
- 2294 of 27111
good afternoon. i wont comment on the price until end of day/week. we have finally got what we wanted, confirmation that this is real. asda have signed!!!this is no longer a pipe dream. AND , if you look at the rns , it's even better than we could have imagined.
"Even before the first machine has been converted
ASDA and Stanelco are working together to look at other areas of opportunity for the technology."
to me , that says this is just the start of a series of deals with asda. we joked about it a few weeks ago but maybe we WILL be seeing asda using seo's water-soluble detergent capsules in in thier own brand products, foamed starch trays, edible sachets, maybe even frog-pack in the stationery dept. pure speculation, but so was todays deal a few months ago. so , relax. let the sell-on -news people sell. this is just the beginning. this is what asda own man says, (its worth repeating over and over again)
Tony Ruane, Technical Manager, Meal Solutions category at ASDA said:
'This is a first to market for ASDA - real innovation. This could well turn out
to be the biggest thing in packaging for years. The benefits for both the
environment, our customers and suppliers from this technology are far reaching.
The potential for the use of Stanelco's technology grows every time we look at
it. Every visit to both stores and suppliers identifies new areas and ways in
which the technology can be used. We are looking forward to working with
Stanelco.'
EWRobson
- 24 Mar 2005 13:43
- 2295 of 27111
Good stuff, bos. Now, if you want a super example of a flag just page up and look at the SEO chart. The future action is quite clear. Joint the resitance and support lines and I believe you can guarantee that the sp will break out upwards before too long. If in doubt, just say that Uncle Eric told you so. Just shed a passing tear for B**G, though.
Eric
stockdog
- 24 Mar 2005 13:51
- 2296 of 27111
I think it's worth saying again, bosley
'This is a first to market for ASDA - real innovation.
This could well turn out to be the biggest thing in packaging for years.
The benefits for both the environment, our customers and suppliers from this technology are far reaching.
The potential for the use of Stanelco's technology grows every time we look at it.
Every visit to both stores and suppliers identifies new areas and ways in which the technology can be used.
We are looking forward to working with Stanelco.'
Every sentence carries its own weight. The decisive uptrend since mid-Feb's retracement remains well intact. It's almost entirely blue now with soime substantial buyers coming in, even though the general weakness in small caps is holding it back - end of tax year profit taking etc. - but it is now on its way to where we all know it is going. Up and up and awayayay . . .
woof, woof
SD
Chiva20
- 24 Mar 2005 13:58
- 2297 of 27111
Bos, Uncle Eric, Woof, Di, great feedback thankyou :o)
aldwickk
- 24 Mar 2005 14:21
- 2298 of 27111
Are we forgetting Wal mart, with Wal mart owning Asda whats to stop SEO doing the same kind of deal with Walmart inside the 12 months.
bosley
- 24 Mar 2005 14:34
- 2299 of 27111
good to see you are up to speed,aldwick!!! :)
sd, absolutely!!! every word is loaded.
markusantonius
- 24 Mar 2005 15:07
- 2300 of 27111
What do we think the new support level will be, short term?
A Ruthies Fund
- 24 Mar 2005 15:09
- 2301 of 27111
Hi All
Been rushing about sorting family out hence checking sp late..as usual
:) :) :)
Must have some tea!
Regards Ruthie
cashcaptain
- 24 Mar 2005 15:49
- 2303 of 27111
wonder why share price has not moved up much today on this good news?
Chiva20
- 24 Mar 2005 15:54
- 2304 of 27111
Cashcaptain, read my post on this earlier today and then the subsequent responses from the SEO fan club
Poverty
- 24 Mar 2005 17:27
- 2307 of 27111
It is definately BIG news for the wider market and world out there... The press will see it as a substantial breakthrough and the start of serious long term value in SEO - they will HAVE to comment on it. I think the sp will be a long way from 18p in a years time (and of course sooner than that!).
Stanelco have a big sounding name - and now they might well fulfill it! Whoever Mr.Elco was!
tipton11
- 24 Mar 2005 17:54
- 2308 of 27111
twlce as many buys but price, on this news, has hardly risen...exclusivity deals are great for ASDA but what is in it for us?...no wonder the price has scarcely moved...there is a great big world out there with large companies who will be forced to keep up on this technology snd if not from seo will in not too long a time find alternatives.