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

Ive bought and sold these a few times, but now wish id held,i need to get back in for the long haul,you can see where these are going..JB..

wow!!!! what a week!!! second everything you said , eric. im wearing a big chesire cat smile. :) and well done to balchin. i dont think ek will be back.

Very pleasant day - earning money whilst out at the Traders Day - up we go!

SD

Just got back from the Shares trading day - and what a lovely surprise - especially as I had invested my 2005/6 ISA's on Wednesday - but had not got round to selling out of my main account - think I will hang on a bit longer.

Have a good weekend all - I certainly will

Baza

Sorry I missed you at the fair, Baza. Met up with a few friends from the BB's. Next time.

SD

sellsell, eric

The comment i referred to was not a public statement. But my broker, who has been watching me top up from 5p upwards to my current holding of over 1m and was not willing to follow my recommendation, finally agreed that i was on to a winner and he himself had bought 500k today. and his reason was that a good friend of his at peel hunt had said that a US deal is to follow shortly with a number of others following consistently due to such an intrest in the Greenseal RF sealing. I think we will now see peel hunt pushing this stock and an in-house note which has been well overdue, as they have been very silent up till now.

morning all. ssanebs, i have to agree, about bloody time. i did notice though, that there were some large sells going through towards the end of the day. even so , the price held up very well indeed. the impression i get from seo is that they want greenseal out there , and quickly. once greenseal is established they can then focus on getting their other patents into the market place. frogpack will be good , so will the new bubble wrap. but the biggie for me will be the starch trays, which , imho, will dwarf greenseal. even though seo patented the starch tray technology before greenseal, its been greenseal that came to the market first. this is the rns from may 11th last year.

Patent Application for new low cost
biodegradable material


Stanelco plc, the RF (radio frequency) applications group, has applied for a
process patent on behalf of its wholly owned subsidiary Adept Polymers Ltd. This
follows the development of a new range of low cost biodegradable materials that
can be processed like conventional thermoplastics.

The materials are comprised of polyvinyl alcohol (PVA) and starch and have
unique properties; combining the strength and dissolution advantages of PVA with
the biodegradability of starch. This facilitates the production of a chemically
resistant, low-cost film, which can be used as a replacement for other packaging
materials as well as opening up a new range of opportunities as a result of its
enhanced characteristics. With the equipment recently purchased from Sixela,
Stanelco expects to be able to produce the material in quantities of up to 2000
tonnes annually within 12 months.

Commenting on the development, Ian Balchin, Chief Executive of Stanelco, said, '
It is our belief that for biodegradable materials to become widely accepted they
must be able to compete on cost terms with conventional materials. Trial
marketing indicates that this material will open up new markets and applications
that were previously thought to be impossible or uneconomic. Our initial focus
will be on replacing conventional PVA materials for applications such as
detergent capsules and laundry bags, a growing worldwide market that we estimate
to be worth some 50m annually.'

did they put this developement on hold while the concentrated on greenseal? or has this been going on in the background? if you think about it , it would be a fantastic add-on to the tray lidding side of things. and it is nearly 12 months on from the announcement. or am i trying to get seo running before they can walk???? must calm down ........

Ladies and gentlemen, I bring you the info requested see post 2580.
from Packaging News albeit edited as i have had to type it out manually.

Stanelco, has announced that it has signed a binding contract with Asda for a 12 month exclusive agreement for the application of the group's Greenseal tray lidding and thermoforming RF technology in the UK and Ireland. Asda anticipates that several hundred machines will need to be adapted to use this technology.
The agreement follows successful trials at a number of Asda suppliers. Where practical they will convert from traditional heat sealers to stanelcos RF technology.
The main benefits of Greenseal technology include; up to 20% reduction in packaging costs, a higher integrity seal, reduce the possibility of pack leakage, the use of easily recyclable mono plastics instead of laminated plastics, and a saving of up to 70% on power in tray lidding and thermoforming machines. Asda believes the conversion costs will be greatly outweighed by these benefits, as well as long term financial savings.
"This is first to market for Asda" says Tony Ruane, technical manager, meal solutions at Asda. "The environmental benefits of the technology are immense and we are looking forward to working with Stanelco to widen the reach of RF packaging in the coming months to other parts of the business"
The 12 month agreement will commence this month, following a further two weeks of successful commercial trials with three Asda supplliers. Stanelco will be responsible for the installation and maintenance of the tray lidding technology.
The agreement will generate a revenue stream in excess of 5m in the first year.

As a novice i am really interested in learning the way the markets work, and I find the SEO scenario fascinating. I only hold 3000 shares which i bought at 15p so im only a small player but i hope i can make a bit by holding these for a year. Who knows they may go to 2+!
Assuming they make significant profits in the coming years and start to pay dividends, surely the big boys would want to buy in large volumes now whilst the price is low so as to get a good yield(is that the correct term??) on their investment. As the price rises the future yield declines in percentage terms
Am I making any sense?

Beat me to it Accord, nothing new there to us BUT the main thing to me is the coverage SEO are getting in trade magazines which will widen peoples knowledge of SEO and RF Sealing and could provide other opportunities.

a good point well put, keith. seo were paying a dividend until last year. hopefully they will start again in the next few years. andy, accord, at least seo are IN somewhere. nothing in shares mag again! and nowt in the papers today!

Bosley, the two largest trades at end of day which are recorded as sells are actually buys which were placed earlier in the day but not reported until close of play i.e. 'T' (protected) trades.

They were the ones for 850,000 bought at 18.847 and 600,000 bought at 19.188.

I don't know if EK has that much cash available because it could have been him buying back his shorts - alternatively insti's topping up.

Keith, there are two main ways to make money investing:

1) Go for capital growth - find a growing company like SEO and buy low and sell high. The money you make is normally referred to as the return on your investment (yield is mainly reserved for dividends).

2) Go for longer term value - find an established company which is ticking over nicely and stable enough to issue decent sized dividends. Take the divis a couple of times each year and if you re-invest these back into the company over a long period of time (years) the effect of the stock market constantly rising will compound your returns.

The institutions which will be interested in buying into SEO will be those running UK small company growth funds (as part of pension portfolios, investment trusts etc.). It all depends on the fund manager as to what level of risk they're prepared to take - generally buying in at the very early stages of growth carries a lot more risk, so some institutions may not be tempted to get on board until there is hard evidence of decent sales coming from the UK and US deals in the accounts - conversely others will be chomping at the bit to get a slice of the tasty SEO action.

Some institutions only notice companies on their radar when either the market cap. or share price is over a certain level - hence as SEO's price increases, so will the likelihood of more institutions getting on board.

With SEO looking to become a major supplier in the US, this will attract US investors also.

If Peel Hunt are advising clients to buy SEO up to 25p because a US deal is likely to be announced in the next couple of weeks, then I think you stand to make some decent returns from your SEO investment if you hold for a year.

Not bothered too much if SEO not in shares mag or papers yet Bosley, gives me some time to find some cash as SEO is now at the point of confirmation of what we have believed in all along. It is going to massive, 20p was a dream to us last year, its almost here already and just about to break out even further.
I am already sat on 3-5 bagger for most of my holding but this is still going to be a multi-bagger and I hope to get some at less than 20p to top-up myself and put some away for my kids for a couple of years.

i know what you mean about finding more cash , andy. i may do the unthinkable and borrow some to invest. i cant see this going any other way than up, now. if seo are going to develope this model of training engineers to retro fit machines, then all i can see is a steady flow of rns's teling us about engineers from different parts of the world coming to learn.at times, the posts on this bb, sometimes by myself and others, got a little bit dreamy. it just doesnt seem that dreamy now!! and we have still got bubble wrap , frogpack and the starch trays yet to come...............

and INGEL but lets leave that until the cc is sorted out.

IMO, If Stanelco continue to play this right, develop many revenue streams from different products with patented technology and truly understanding the wider potential for RF sealing then they could be a new Tetrapak in the making.
In 5 years we could see them in or pushing for FTSE100. I say well done to Mr Balchin, Howard White and their team. Now, where can I get more cash from???

Bosley, AS, Eric and all you clever b*****ds out there for holding on (and buying more) . . .

Given that the first rule of making money is not to lose any, I take great comfort from a basic advantage that SEO has over many, many companies in a similar stage of development of a new product - they have been in business since 1953!!

The accumulated wisdom of having survived through some pretty turbulent second half of 20th century ups and downs in what is basically an engineering business, is now being demonstrated by their skill at rolling out their latest product with minimal capital outlay or risk and optimum speed worldwide. They have beautifully balanced the profit motive against the risk temptation in what they are now doing, IMHO.

Greenseal is the new Bluesky!

WooRF, wooRF

SD

Stockdog,

Thats a good point, 1953 must have been a few management changes since then, LOL

Back from Doncaster, Harvey was a right little heavy weight cutie, read all the post from Friday and see we have some new kids on the block. seo I feel a top up coming again I might have to take me pills.

Great post, stockdog; you can really see the experience to the fore. Every move seems to be according to a master plan, learnt in the hard school of trading new edge technology. The best thing is the minimising of direct employment: they are buying the experience of the engineers, the manufacturers, the marketing companies and are holding the financial strings, the copyrights and the technology. Note, for instance, that they will still do the R/F piece themselves to keep that close to their chests.

How long before the next major move? It could be this week, even tomorrow. The chart has now become clear as a rising channel and we are at the resistance point which could be the precursor of the major push. Zak Mir confirms my earlier point that the next move should equal arithmetically the move from 6p to 18p and thus take the sp to 30p. It may not be in one step but rather several as new RNSs come out. There should be (i) the US marketing contract; (ii) a manufacturing contract; (iii) engineering agreements for one or more other markets and perhaps (iv) something on Frogpack; I pick that out as it is likely to involve a compeltely different team whereas starch trays overlap (packaging viewpoint?). With the cc kicked into touch for 6 months or so and EK kicked into 'kingdom come' for evermore I can't see a cloud in the sky; the sky is blue! the sky is seo-blue!

But care might be needed not to chase the price. If there's a signifricant rise first thing, for instance, it could well flush out profit-takers at, say, 20p which could bring the price back. However, there have been a lot of well reasoned posts justifying significantly higher prices. In particular, Tim Freeborn, who wrote the original Shares Play, is the author of the bullish Evolution analysis giving a 30p target. If you are not overweight in SEO then there must be some dead wood in that portfolio (I was going to say dogs!) that can be cleared out. How big a holding? Mine is 50% of my portfolio and rising!

Eric