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

Agree tweenie that the ASDA spokesman is off message (particularly off the WalMart message) - more likely reason for postponing plans is that SEO were not ready! Heard Sir Terry Leahy on the radio last week talking about their green agenda - you can't see him saying that they wouldn't take a green action because customers aren't ready; they will lead the way and we will all have our own composters. I believe that SEO are no longer obligated to supply Greeseal exclusively to ASDA so what odds on an announcement re Tesco.

Alan: I hope you haven't lost faith at the wrong time. Perhaps Kim has it right saying that he is backing Schroders judgement. Probably more false dawns yet but the retracement presents a buying opportunity.
Eric

I spoke to someone from asda helpline this morning and they were not aware of the Independent article or that asda were no longer going to use bio packaging; however, he was not aware that they had intended to go down that road anyway so that was not much use to me!
kim

I too hope I am very wrong, but my rump holding is still considerably large.
Perhaps I should have typed that I have lowered my risk profile on this stock, and the cash will just sit there in my trading account waiting for any news or for a better opportunity to present itself.
Merely an action in making myself more comfortable with a situation I understand increasingly less.
Alan

I too hope I am very wrong, but my rump holding is still considerably large.
Perhaps I should have typed that I have lowered my risk profile on this stock, and the cash will just sit there in my trading account waiting for any news or for a better opportunity to present itself.
Merely an action in making myself more comfortable with a situation I understand increasingly less.
Alan

It is inconceivable to me that ASDA would officially state that they would dump green packinging full stop. It goes in the face of what is currently a hot topic worldwide and therefore can not believe ASDA gives this movement the "2 fingers" up. Even if they wanted to , economics with both green and CHEAPER BIODEGRADABLES would prevail

hewittalan6
I am not having a dig at you , but i thought you and a few others had a little more imformation than others that made you feel comfortable with holding SEO, but now ???

There seems to be a lot of out of proportion response to what is a single comment from ASDA. The only real picture for SEO for some time has been the US. Some of the comments and actions above would infer that ASDA were the only potential customer of SEO. What about the comments that Biotech were to be at full 200,000t capacity (was it 2007, 2008?), where is all that material going to go?

I also don't think Schroders and others will have stumped up 15m based on ASDA taking compostable packaging.

There is also Frogpack and Pulseline now hopefully moving, admittedly small but combined with much lower R&D, and cash burn

I do agree Wagner needs to reveal something positive before results, 1 big deal with a major company and its game on. As said previously the low down on Greenseal needs to be also revealed. If Walmart or MacDs were to say they are no longer interested then that is a problem.

daw2

Auto,
As recently as Monday, an Asda employee was telling me that all was well, now it appears it maybe not.
I am unhappy with my exposure when i am not clear on what is happening and when and I have reduced the bulk of what was a very large holding. I still have a fairly major interest in this company, but I felt the need to opt out til I was more clear on where things are going.
I agree that Asda are small fry compared to much of the other stuff, but Asda was the only thing I had factored into the decision to buy. The rest may well come, and I will be waiting to get back in, but unless there is clarification otherwise, the sp will drift a bit yet.
I only held on because the Asda stuff should be imminent, but without it I see a long wait for news and many more buying opportunities.
Alan

Another thing, if some idiot from ASDA has only just realised, after having carried out packaging trials over a year or 2, that most of Britian don't compost and based this latest statement on that then maybe they should be strung up!

Maybe......just maybe, we are seeing why Starpol 3000 has yet to seek FDA approval. Perhaps SEO have been told that unless they can sort this problem out, then Asda, and by extension WM are not that interested. Meanwhile SEO R&D are furiously trying to figure out a blend that will suit........................

hewittalan6
i have felt like moving on from SEO many times, but still live in hope that one day something may happen to get this company rolling.
good luck with your investments

Cheers auto. Having a bloody good financial year despite the best efforts of SEO to ruin me
Alan

"Most of Britain does not have home composters," probably true but -
yesterday our council provided us with a nice little brown plastic bucket for transfering cooked / uncooked food to the bin previously used for garden waste. We are allowed to send food as mentioned, meat,fish.bones, flattened cardboard, vegetarian animal bedding or pet litter. Methinks biodegradable starch based packaging would go into that bin !

Sells outweighing buys 6:1 - and we're only down a bit.... surely the price will receed a tad more as the week goes on....

The problem with Stanelco has been that optimistic information has been released that has not been commercially viable. Its good that the era of mis-information is over. The last information released was embodied in the Offer Letter of 9th October and it is reasonable to say that this replaces previous RNSs; the management have gone and the current regime cannot reasonably be accountable for what was said by them.

Looking at that document, therefore is important, particularly with regard to inferences as that is what the company will be measured against. First: "the proceeds of the issue will be used to move the business on from its development and acquisition phases into the commercialisation phase of the intellectual property portfolio. The proceeds will provide management with the working capital to convert opportunities into commercial contracts whilst allowing the Group to meet its existing financial obligations."

Ok, we have heard that before but listen to it as if for the first time. The report goes on to pick out two specifics, namely the completion of the Biotec purchase and "to enable successful completion .... of at least the first two manufacturing facilities in the USA, which will cost approximately 2.8m each, for the production of starch based resins, including Starpol materials, developed by Biotec."

Conclusions from this are: (a) the major source of short to medium term revenue is seen as the USA and is focused on Biotec products; (b) the construction of these facilities will take some time; (c) commercial contracts will presumably be dependent on the completion of such facilities; (d) the story convinced Schroders and other major investment players.

So the expectation of an early contract is whistling in the wind. We should expect significant progress with the prelims on 21st March - at least a clearer idea of the forward schedule. Enough to sustain the current price or move it forward? Hopefully an idea of forward revenue expectaions and outcome for the current year; the cash burn is pretty high so they must be aiming for positive cash flow on a monthly basis before the end of the year. Nothing dramatic likely on the sp but perhaps you could see a cap. of 100m by year end or an sp of 3.3p or thereabouts.

Eric

EWR agree but 1 quest., how do youknow the cash burn is still pretty high? Cash flow positive and avoidance of bankruptcy has been my hope for 2007 since the placing, once that is secured I will feel much more comfortable even though growth could be significantly protracted.

Cheers

daw

I always seem to jump in the river at the wrong time, but thankfully get out at the right time. Bought some more earlier on. This ride reminds me of the early days of buying RTD at 10p and selling later.

I think after the previous 12 mths of ups and downs SEO are playing close to their chests and I don't blame them. Interesting to see whether there is or will be any directors or institution buying.

E WRobson
Eric, do you think SEO could reach that kind of SP without a consolidation of shares, i personally don't , 3billion shares at 3p = ? i don't know how to work it out,
market capital that is

dawall: The offer raise 16m based on the offer letter. The two plants plus Biotec accounts for nearly half this. They have cut back on overheads. If progress is slow they can probably conserve cash. The problem comes if they need to build up support resources in the US, the time of maximum caash burn. However, this is a 'nice problem' in that there will presumably be contract(s) to support the expenditure. This addresses automatic's question. Further fund-raising to support contract exploitation would very likely be preceded by a consolidation of shares, so that they no longer have the stigma of association with a penny share.

Eric

SP of 3p approximates to 90m m/cap.........was approx. 300m when flirting with 30p on hype.