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

"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.

gary I actually believe that SEO management believed the hype themselves; certainly Evolution did. We had all those projections re the licence fees from Greenseal. Everyone was taken in but they forgot to tell the teccies about the operational requirements. Pity really.
Eric

If it is true re the ASDA none bio packaging decision (and it looks like it is) they are being very short sighted.
Our council offered a good deal on recycle bins several weeks ago, and I am aware several other councils are also going down that route. Ok I know not everyone has a garden but the vast majority do have a plot that could make use of the very small amount of compost that bio material would make.
Also a closed tip within a few miles of where I live has a filter that burns off it's methane gas, so it causes very little pollution.
You would think they could use the gas more economically.
All this points toward composting becoming almost as general practice as recycling.
Where Asda fear to tread, I hope other potential customers are not as short sighted.
They appear to be forgetting that in the supermarket world of high competition, the customer is king.
No wonder Asda can't catch Tesco.

"Ok I know not everyone has a garden but the vast majority do have a plot"

The majority of people in UK live in towns and cities. The majority of these people do NOT have gardens or any sort of plot.

SEO looks like being history.

I'm with you Greekman, I have a composter and local council also has a recycle plant for such waste. End of the day the recycle option costs less than landfill and creates a product that can be sold back. Our government also seams to be on the recycle route, our composter was provided free of charge, RRP was 39.99.

Haystack, I'm a member of the majority and I have a garden, ergo: of the ~7.5m others in this fair city, the majority must also have a garden...QED!

Unfortunately not. The majority live in towns and cities. Almost all the bigger houses are multiple occupancy with just one flat or bedsit having the garden plus large blocks of flats with no garden. I suspect that the average is a fraction of one garden per person.

Haystack,

As an ex allotment holder, I know that the amount of compost end result after composting bio degradable is very minute compared to the amount you start with.
If you fill a large bin with composting material, you end up with a volume of less that 20% of start volume. Most bio degradable material used in packaging will degrade down into almost nothing. Try filling a small bin with such material and you may be suprised how little you end up with.
How many of these city dwellers who don't have a garden go out and buy bagged compost for their window boxes or plants in pots.
If you look at the prices of small bags of compost, it shows that composting your own material can also save you money.
Having thought more re my previous statement (most have gardens) perhaps you are right re most don't have gardens, due to city/town dwellers, but my facts above are I am sure correct.

I have a very large garden and do make compost. I have always made it when I have had a garden. It wasn't very easy when I used to live in a flat the top of a large house in Pimlico though.

Composters are great but in my experience they do supply the rodent population with a nice pix and mix deli.

Not being as green-fingered as some here I shall not talk compost.

Heard words that SEO cash burn has halved...... another month to wait to see if that's the case but would be very welcomed news in this part of north london if its true.

A mere drop in the dishwashing ocean, but Quantum must be producing income for Stanelco; from Reckitt Benckiser's results today:-

"Dishwashing. Net revenues grew 3% to 591m. The Company's market share
remained strong in Europe and Worldwide helped by the launch of Finish /
Calgonit 5in1 and Finish / Calgonit Quantum. Net revenue growth was somewhat
held back due to higher promotional investment."

garden or no garden it makes nodifrenc we all just wont to put our garbage in the bin with out damaging the planet is asda nuts all the stores sell lose veg and other products what do you put them in the bags they supplie andthat wont change
you can not go back in time but you can change the future
PS they may be right lets all start composting grow all our own and they will lose a fortune i dont think so andis everybody going to take a big sack with them when they go shoping