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

Tony,

we'll have to agree to disagree, but I hope you're right. I see the whole 'new regime/old regime' issue as an attempt to repackage the same product and keep the chattering classes quite. I am in a very pessimistic phase after a very long time of being optimistic. I guess my patience has worn thin, once bitten twice shy, etc.

Hope your hangover is kinder to you than mine was last Saturday - phew, epic!

Alan,

I agree completely and said much the same back at the time of the open offer.

The clock is ticking - SEO dont have forever. For example, see balernoy's post above.

Welcome back alan.
Glad to see your house more and internet reconnection went as swimmingly as mine.
Off to sunnier cliomes for xmas.
Still keeping the faith.
Will check in weeky ish unless I have anything relevant to add.
Still believe a large order will be inputted before new year.
Can't get any further with this as burnt bridges getting it last time.
all the best
merry xmas and a better new year to you all.

well that wasn't very nice, who sold the 6,000,000

automatic
Sorry just top slicing.

Same person who sold the 10,000,000 probably!

does anyone know if Sylvia is still employed at SEO?

10 bagger in 1 year...here's why!

Re: Stanelco Plc in Co-operation with Wal-Mart and Perseco
Posted by: Mini Buffett (IP Logged)
Date: November 26, 2006 09:01AM


.

For those that haven't done the calculations based on the information in the presentation, this is how it works out.

Stanelco receive 10 cents per pound of Starpol via distribution agreements
Stanelco receive at least 10 cents per pound of Starpol via MMF's
The minimum production Stanelco were allowing via MMF's is 20,000 tons per annum
20 000 ton [metric] = 44,092,452.44 pound
44,092,452.44 at 10 cents per pound equals $4,409,245.24 per MMF per annum = 2,282,525

This money is a royalty, it is at no cost to Stanelco, so it is pure profit

Cash burn was shown in the trading statement as being around 3.6m for the year, and year end figures were shown in the placing RNS as being "pre-tax loss for the Group of 3.2m on a turnover of 1.45m", so ....

2,282,525 + 1,450,000 = 3,732,525
3,732,525 - 3,200,000 = 532,525

Stanelco only need one Starpol MMF to end up making a profit next year of 532,525
If as expected Stanelco convert the two LOI's to MMF contracts for the minimum 20,000 tpa, the profit will be 2,815,050

Also if Stanelco convert 80 machines for salad bag lines, they will receive licence revenue of ....

In year one - 80 x 35,000 = 2,800,000
In year two - 80 x 20,000 = 1,600,000

This again is profit, and can be added to the 2,815,050 of profit giving ....

In year one - 2,815,050 + 2,800,000 = 5,615,050
In year two - 2,815,050 + 1,600,000 = 4,415,050

The price to earnings ratio depends quite a lot on growth and growth potential, and if Stanelco achieve the above they will certainly have both, and will IMVHO have a very high price to earnings ratio applied to the stock. There are currently 2,977.65m shares in issue, so based on year one figures (as year two growth should take the profit to a higher level than year one despite the lower GreenSeal revenue) ....

At a low price to earnings of 15 that would give a share price of 2.8p
At a medium price to earnings of 24 that would give a share price of 4.5p
At a high price to earnings of 50 that would give a share price of 9.4p

This is only the figures relating to known data, and I am fully expecting several more Starpol and GreenSeal deals over the next 12 months, plus deals on Wrap 100 and the JV Carclo capsules, and increases in revenue from the other commercialised products, as global plans to reduce climate change really get into swing

The current share price is a mere 1.36 pence, so plenty of profit to be made, with a possible 10 bagger in one year.

maestro
I need it to ten bag for me to break even.!!!!!!!

driver..just buy a june spread bet tomoro and you'll be laughing all the way to the bank... 1000/point will only cost you a deposit of about 150

Maestro -
"Cash burn was shown in the trading statement as being around 3.6m for the year, and year end figures were shown in the placing RNS as being "pre-tax loss for the Group of 3.2m on a turnover of 1.45m", so ....

2,282,525 + 1,450,000 = 3,732,525
3,732,525 - 3,200,000 = 532,525 "

If loss was 3.2m on t'over of 1.45m, then costs were 4.65m which must be deducted rfrom 3.73m = -0.92m - a loss.

So it will take the second 20k tonnes to make a profit of 1.36m.

That said, although I'm not so sure of a 10 bagger within a predictable time/news-frame, I can see a 5 bagger within a year of so is quite possible on relatively modest good news IMHO. Equally (sic) I can see us going nowhere with no concrete results.

Standstill v. 5 bagger is about 50/50. Unless we can improve those odds to nearer 33/67 on news of clear progress, it will be hard to contain ones frustration long into 2007. Not when so many of the other holdings in my portfolio are going vertical on tangible profit growth just now.

Not unlike Driver I need a 9 bagger to break even.

driver me to, the only plus point is that the decision to hold or sell has gone since I am so far down.

re. cash burn over the next 12 months I would expect this to drop significantly due to the large no. of redundancies and the fact that we are told development of Starpol is complete meaning development costs should be vastly reduced although to what I don't know. Dare we also believe SEO when they see Greenseal is 95%+ sorted or could there be additional costs here?

luckily my spread bet was triggered at 12p and didn't bother buying until 0.9p

Scientist Live mention GreenSeal
.
December 6, 2006

Packaging & Labelling

Another new packaging technology comes from Stanelco, which says it has created the tightest, most efficient seal available in packaging anywhere in the world.

Retailers who sell meat and other perishables in familiar thermal heat-sealed packaging can now turn to an entirely new packaging technology that employs radio frequency (RF) to create the seal.

GreenSeal generates fusion temperature within the packaging material using the alternating high frequency electromagnetic energy of RF. This technology eliminates the need for a polyethylene (PE) sealing layer within the laminate, saving up to 20percent on packaging costs. It also makes the pack recyclable, saves on power usage and creates a better and more economical method of sealing. The result is a more environmentally responsible sealing platform with superior sealing for all products, even through sauces, fats and other contaminants.

Stanelco also offers purpose built RF tray lidding machines and retrofits to existing machines such as Reiser, Multivac, Tiromat and Proseal.

[www.scientistlive.com]

See Greenseal in action, including sealing through very heavy contamination (five minutes long), the link is on the front page of the Stanelco Shareholders (unofficial) Website here ....

[www.stanelco.devisland.net]

Revenue from MMFs not pure profit. I believe there will most likely be a running cost associated with the MMFs and procurement of raw materials etc....

Maestro,

As gary says, revenue from MMF's not pure profit - the MMF's are not a license situation and will have the usual running costs associated with any commercial enterprise.

Also, it is all very well having the capacity to produce 20 tons per annum but you make nothing unless you sell the bloody stuff!

The MMF's were a license situation when MW announced 'deals in the final stages of process...', but I believe Sphere put an end to that and we can forget those particular deals and the letters of intent. What we have on the table now is a completely different commercial venture funded by us and, in the main, Schroders, producing something for which at present there are no committed buyers.

Going back to the US office closing - if you had a small US office and were about to embark on the building of two MMF's in the US, would you close the US office if you were confident a lot of business in the US was just a short way down the line?

'Also if Stanelco convert 80 machines for salad bag lines' - I assume you're talking Greenseal. Thats a big 'if' considering that 18 months ago we expected 200+ licenses by now and to date we have none!

I also needed a ten bagger from the price you mention of 1.36p - unfortunately the SP has dropped still further and I probably now need a 14 bagger!

If Schroders influence results in some kind of profit (the jury is still out) I think at most, from the current SP, we're looking at a 3 to 4 bagger. At that stage the institutional investors such as Schroders will cast SS Stanelco afloat and rub their hands together.

Just to be different, again!
I believe the Starpol 10cents per lb Maestro quotes is indeed pure profit. The information coming, as he says, from the Project Foil slides presented to Institutions.

This would be so for Distribution Agreements. Under these, the sub-licencee does the manufacturing, is responsible for sales and SEO have no capital investment.

Under the MMFs SEO have capital investment commitment of $5million but receive "royalty on lb compounded in excess of 10cents per lb" as well as a Technology Transfer Fee of $1.25.

I know these slides appear to negate some previously announced plans or descriptions (JVs fully funded by partner etc) but they are the latest we have - and do seem to have been prepared in the light of other decisions that have come to fruition - but probably not the "1st facilities to be agreed by Oct 06, revenues April 07" nor " "1st products on shelf 1st November" Walmart" .

But also SPhere may have scotched some of it.

Tony,

Who runs the MMF's and finances the running?

Post deleted by the author as it was complete rubbish!!!!

According to these slides for MMFs :-
We invest in equipment $5m
We receive Technology Transfer Fee $1.25m
We receive royalty on lb compounded in excess of 10 cents per lb

SEO will get its in excess of 10cents as a gross royalty for doing/spending nothing more than putting up the "setting-up" contribution of $5m.
From here we know no more, but the MMF will have the expectation of profit Otherwise what is the incentive for it's owner(s) doing it? Whoever the owner(s) be. That profit would be after costs which include Royalties.

So we are back to SEO receiving a Gross Royalty with no costs falling on itself.
And, if it is to be a JV, a share of the net profits too - but there has been little or no mention of JVs lately.