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

Tipton11,

you must have missed these posts.[ name alternatives to SEO R F green lidding.]

24 Mar'05 - 14:21 - 2297 of 2308 edit



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'05 - 14:34 - 2298 of 2308


good to see you are up to speed,aldwick!!! :)
sd, absolutely!!! every word is loaded

fair comment, tipton. i do think you are looking at seo in the wrong way though. in its current state seo is basically a new company with new technology.it has recently signed a good deal with an american based company, reiser. after better than expected trials it has just signed with the number two supermarket in uk. this supermarket is owned by walmart. ALSO this week seo was given leave to appeal against the patent claim verdict. seo is backed up by a major pharmacutical company,cardinal health. all in all , we aint doing that badly. as for the price hardly rising on todays news, i do agree that it's a bit disappointing. i think we all expected more but i also think eric has got it right in his post 2290. BUT, for me, todays rise was close to 40% so i aint complaining. AND it looks like we've got support at 17p now. work is over, going down northampton way to see my brother and his new son tomorrow. looking forward to it.

I wonder whether SEO will try to sell their optical fibre furnaces in light of the low levels of orders in their historic businesses.
The company is involved in "strategic transformation" and moving towards securing its intellectual properties.
The appointment of Terry Roberts as CEO,with his thirty year's experience at Sainsburys,latterly as PACKAGING INNOVATIONS manager,will hopefully prove to be a wise one.
The cap sealer has great promise too.
All in all a great little British company...hope to see success...it would be well deserved.
ETHEL

bos
Clad to see you of enjoying yourself Im of to work tomorrow. still I have got another two weeks off next week, going up to Doncaster to see little Harvey.

Bosley

You mention Cardinal Health, they are a large American
co with their Corporate Headquarters at

Cardinal Health, Inc.
7000 Cardinal Place
Dublin, Ohio 43017

Is it coincidental that CH and Walmart are American ?????

does anyone have a copy of tim freeborns buy note out yesterday

There is a one hour special Walmart program on CNBC (Sky) at this moment. 10 - 11am.

Edward Kalfayan first wrote about SEO for lemming at 4p

We write from the perspective of a retired executive, who, many years ago, was working in Cologne, Germany as European CEO of Rose Forgrove, once a global leader in the wrapping machine industry, which led the start up of automatic pre-packaging of meats and cheese in German supermarkets; and also developed vacuum forming machines there to form plastic trays for packaging fresh foods etc. That name has almost disappeared, but has left us with previous experience from which to comment on the striking news emerging from SEO and its client Asda yesterday and during the last three months.

http://lemminginvestor.com/secure/SEOAsda.html

aldwick & bos many thanks for helpfull replies...I am not pessimistic about prospects but many posters are too euphoric I hope they are right and we all will be delighted.

I still disagree over exclusivaty after all at the beginning of tray liding there were 5/6 companies very interested, why not take their orders as well...

probably because ASDA (from its comments) wants to get itself set with all that Stanelco can possibly offer it - (anything and everything that is packaged ??), and then it will be one step ahead of the rest of the massive supermarket chains, by perhaps performing a very dramatic long-term cost-cutting exercise (due to its Stanelco liaison and technology), and then it wil be up to the other supermarket chains to follow........so although it would be great to see SEO getting in with others; the ASDA-SEO work over 2005, may turn out to be a perfect display cabinet of the products (and their cost benefits) that other supermarkets can get from SEO......

elrico

Web site requires Id/password??...which you ought not to give out I suppose.

Regards Ruthie

Can you paste it ? Elrico.

Also, Belisce (and others)..... If this 12 month venture proves a complete success, 2005 may result in Asda wanting to cement a more permanent long term contract which secures absolute exclusivity. Think about it..... Asda may make an offer to Stanelco which is just too good to refuse - benefitting the Company and shareholders alike!.....?

morning all and happy easter. good comments being made. i have to say that i am happy with a one year exclusivity deal with asda. i think seo need this as much as asda. it gives seo time to build, iron out any teething problems, and also to develope the technology. as belisce6 says, it also puts seo in the shop window. BUT i would not be happy with a premanent exclusivity deal. it would make seo reliant on asda, puts them in a position of weakness. m + s used to demand exclusivity from their suppliers when they were in a strong position. certain suppliers found to their cost that a change of mind can have disaterous consequences. seo have got a good deal from asda. in turn asda love seo, and what seo can do for them. i also think there will be more deals coming from asda. but after the one year deal , which hopefully will be a success, i think tipton is right and seo should take its technology into the big wide world. remember , there are approximately 50 000 packaging machines out there......and we want them all!!!!!!!!

Good to read, Bos.

Bosley, totally agree. SEO need the year to get a firm foothold on the commercialising the technology and getting the revenue stream and personnel to drive this on. To be honest, could SEO do 1000 machines in a first year, of course they can't but growth will be exponential. After 1st year it will be interesting to see how it pans out, I wouldn't mind betting that Asda have a longer deal but with only the first 12 months exclusivity BUT they will almost certainly be working on other developments with SEO. There is a slight difference here though compared to M&S, anyone can make clothes etc, SEO have a patented technology that Asda need as much as SEO needed a strong retailer to take the plunge rather than wiat for someone else to commit first.

Hi, folk, back from hols. Had time to top up SEO at 18p on Thursday. Good posts here. Thoroughly agree with bos, who in turn agrees with SEO strategy, and andysmith that this is a great deal for SEO and enables them to control their growth. A key point from andy is that growth should be exponential! It could be said to be exponential squared because the actual market penetration is likely to be exponential; whilst to that you need to add the impact of royalties/ license fees in susequent years, plus the impact of other products.

However, I would like to guage what an appropriate cap. should be in the light of the deal:-

(1) SEO say revenue in the first year 'will be considerably in excess of 5m'. Can we assume that the pricing will be held at the quoted 40K with 30K royalties in subsequent years? My assumption is that this will be the case because most of these costs will be borne by ASDA suppliers and the key factor in ASDA'a negotiations will have been exclusivity (note that they have negotiated an extra month with the three extra trials at suppliers). That would appear to mean 150 sales in the first year. ASDA refer to several hundred machines. However, the first year runs from May and SEO's year ends in September so this year is not that significant. The important year for the sp of SEO is Oct 2005 - Sept 2006. Its reasonable to assume 200 ASDA machines in that year. Perhaps we can add 200 Walmart plus 400 other. That would make 800 machines or 32M revenue. Add 5M royalties from sales in current year that would pretty well drop through to the bottom line. There should be pbt (tax 0 anyway) of 10M and pe of 13 at current price.

(2) The exponential argument could mean sales of 100M in 2006/7, pbt of 30M and pe of 4. Actual projected pe a year from now should be not less than 20, implying an sp around 1 and a cap. of around 800m.

(3) These figures could be taken as cautious. The machine popultation is said to be 50,000 including 20,000 in Europe. Many of the major suppliers will supply the other majors including ASDA so will be easy prey for follow-on sales in relation to their other lines of business. Yet we are talking about only 3500 machines in the first two and a half years. That could be doubled or tripled. Then we have other processes and products.

The questions for the packaging pundits are: (1) do you beleive that SEO pricing structure will have stood up in the current negotiations? (2) will most supplier supply the other majors also? (3) do you see the other potential applications as being as important? (4) do you buy off the above ballpark figures? (5) how quickly do you expect the expansion curve to be established and understood in the market?

If these are anywhere within the right ballpark, then SEO is a multi-bagger from here in the next year; it is an ACCUMULATE situation; the last thing that any of us should do is to rush to take profits. Other views please before Tuesday!

Eric

Good, well thought out, well expressed post, Eric. Your reasonaing makes good sense, as always. Even if there is a degree of hasty profit taking now and the next few months are not as rewarding as we all would hope, I tend to think the sp can only go one way overall and that is NORTH in the long run! With a 4-day bank holiday, surely institutional buyers will be eagerly waiting for the 0800 bell to sound on Tuesday? Cheers,

Kus.

Just back from my 3 weeks holiday and the news re SEO is excellent and much as expected. Thanks to all for excellent postings and analysis - it really is a pleasure to read sensible and well thought out comment on this BB. I am still cautiously optimistic with SEO - it still seems too good to be true and I keep looking for the downside - but I just cannot see one - even the Court case seems to be a relatively minor irritant now.

PS - I can thoroughly recommend GOA for a winter break - the weather was a constant 34/35 degrees C with a gentyle on shore breeze, the sea was not a lot cooler - like a warm bath. The food is fantaaastic - 3 weeks and not a hint of a delhi belly - the peopole are warm, friendly and genuine and its so cheap - we strugggled to dpend more than 5 per head for an evening meal including drinks - lovely fish and lobster (about5), Chateaubriand 3, Gin & Tonic (Double)- 75p. The hotels are good but basic, clean and comfortable - and whats more if you have a Tesco Club card or Tesco Credit card it will cost you next to nothing (We shop at Tesco but use a Tesco Credit card for all our purchases - using their club deals we travelled to Goa with Cosmos, stayed in a 4 star hotel, and it cost us 20 (yes 20) - if anyone wants any details - please email me seperately). Our next trip is to Prague in May and again 5 days is only costing about 140. There are no catches.

Looking forward to Tuesday and getting back up to speed

Bazza