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

sharesure - thanks again for the detailed first hand report - invaluable to be able to evaluate what was said face to face with the speaker and other directors present.

My reference to "mountain (or wall, as you have it) of worry" which I think you picked up on was intended as a positive note - all stocks and markets behave this way and SEO's ascent is no different.

Following on from your comments, I guess a new term for shorting stocks such as SEO could be "shirting"!

SD

Super reporting, sharesure. Gives a good picture of a a management team who know what they are doing and making haste with much care. The last fund-raising was really relatively small and it is amazing that they can proceed to build such a major enterprise with such a relatively small outlay. The key appears to be at their won definition of their business sector as intellectaul copyright and not as electrical engineers or what-have-you. They are happy to leave a lot of the leg work to partners who have the expertise - a super example of out-sourcing. Nor, of course, is Greenseal a flash in the pan but only one of a number of initiatives with great potential. The AGM did seem to suddenly come and go and your reasoning that they wanted it out of the way whilst they could speak in quite general terms and thus free the way fort a succession of significant announcements of progress over the next month or two. Whilst they are keeping quite a mean ship, costs will be escalatin so the conclusu=ion is that sales revenue will be be growing quite quickly from now on so that positve cash flow is not that far away. That will allay that must be around; you see so many companies who have to come back for more funds and rarely in the interest of the existing shareholders; e.g YOO, GMC and, this week, AZM an old favourite of mine.

Thanks again, Eric

Been thinking about when Simon Cawkwell & co first went short on SEO, and why. I think it might have been when his legal friends told him that SEO would loose the court case with BPRG [ if only he had known about ASDA/WALMART ect:].

Has anyone seen 'smallcapshares' mag comments on SEO?

please enlighten us, pension271
can you post it here?
thanks
SD

Anyone know a website with a reliable chart for gold with custom overlays etc? Or a near proximation to the gold price - I would use GBS but it hasn't been running long enough. Or is there a type of FTE index or similar which mirrors it? All ideas welcome.
Thanks
SD

Stockdog, off hand you could give the bulliondesk a go..
http://www.thebulliondesk.com

Fred,
Are you trying to say something, LOL

Yes but it is not repeatable.



8-)

Well! How will the market be for SEO tomorrow and this week. May have another week before the ASDA deal is finally confirmed. Wall Street is jittery and there is a lot of talk around about Eliot Waves and another bear market (or we are still in the last one!). SEO charts look good to me and I particularly like the momentum. So, if there is a mark down with the market tomorrow, SEO is likely to recover to at least hold its position on the day and perhaps progress a tad during the week. Doubt whether Evil will try to short again although he might continue to snipe - that's almost a compliment. Very relevant is the comment that there is not a large free market in SEO shares: suggested that just 300million shares are not tied up; compare that to 23million shares traded on Friday and that volume has been beated six times in the last month. That suggests that the MMs (which includes Evolution) will tend to soak up shares rather than drop the price. Perhaps unlikely to be a significant push ahead until we see a major US deal, perhaps Walmart, possibly within the next month.

Not content with soaking up SEO and CFP, stockdog is now soaking up gold! What does he know, that the rest of us don't. Perhaps his frantic digging for bones has revealed a gold locket. Suggest he is better off with diamonds and NML!

Eric

Stockdog /3361 post
as it appears in smallcapshares May 2005 recd sat am by post.

Stanelco, the movie, may be worth 170m, but Stanelco, the company is not. The co., has now finalised arrangements for Asda to adopt its tray -lidding technology. and it quickly thereafter appointed two US companies to commence installing it in the USA. These developments sent the shares up to 21p and the market capitalisation to nearly 180m.

Comment :
Momentum may take the shares further, but at some point punters may pause to consider that although the revenue arising from the Asda deal will be "significantly in excess of 5m in the first year" it will only be the tiniest fraction of 180m. And the total company inclome to which this project will be added was just 1.3m in the 12 months to last October.

Stanelco has several other intriguing development projects, but none of them in our opinion come anywhere close to underwriting the current share price.

Stanelco came very close to being our first 10-bagger ( generating 1000pc profit). We first bought it at 2.4p in OCt 2002. but we got a bit wobbly about it just before Christmas when it was drubbed in a patent infringement suit just after the chief executive sold 41m shares at 4p ( collecting 1.6m and thereby forgoing a further 7m he could have pocketed by hanging on for a few months - hindsight is a wonderful thing). These developments led us to dump Stanelco at 4p ( we allowed generously for the spread in this penny share ). However, one angst-ridden month later, the Asda project and a couple of other positive factors having emerged, we did a u-turn and bought them again at 5.5p . Which puts us 260pc to the good in four months. You need one of those every now and again. Neat work. Lets hope this is too. :SELL

Above as it appears in the mag, I have been in and out of this share for a long time now and still hold a substantial figure - about 14% of my total outlay in shares.
Please post your thoughts.Thanks p-271

Although smallcap shares has a point if only the Asda deal is factored in, that misses the point about how fast the US and Mexico roll out can be accelerated with the training of out-sourced operatives in other companies. Once discussions with major North American customers, ie not just Walmart, start resulting in sign ups the share price starts to look very cheap very fast.

Agreed Sharesure I think smallcap shares give a very shortsighted opinion on SEO, in their own words I think they're 'getting a bit wobbly' as they did before Christmas on their stake. Every indication points to significant upside, the Walmart deal is almost a foregone conclusion and it will only be a matter of time before other supermarkets etc. step in. And this is all before considering the potential of the rest of SEO's portfolio, frogpack etc. Barring utter disaster, the only obstacle preventing a progressive climb in the following months would be short bursts of profit taking and jitters in the overall economic climate, each of which will pass and pave the way for new SEO fan club membership. I don't even think EK would have a stab after his last pitiful effort, and if he does, bring it on! Opportunity to top up for the umpteenth time

Erics prophecy of an average of 4 points a month sounds about accurate for me, I can happily live with that.

Chiva

pension

Interesting post. I tend to get suspicious when only a selective part of a story is published: you can see the journalists trying to find some sells to notionally take profits and not doing their homework properly. I have been complainign recently about such action with sells recommended, or implied, fro YOO, ASC and SEO. So what justifies the cuurent price and, indeed, provides a strong basis for short-term growth?

(1) The Evolution forecast of 3.3p per share in 2007 based on a cumulative delivery of 2600 units. This is, in fact, a very small share of the potential market, perhaps some 5%. The forecast was made prior to the annouincements of the liaisons with Premier and Advanced as foirerunners of an attack on the US market, with Walmart obviously a prime target.

(2) The key factor which is easily missed is the royalty aspect of the payment structure so that the revenue and profits rise exponentially once the volume builds up.

(3) The pay-off to the users are dramatic in terms of reduced costs and other benefits, of which increased shelf life is particularly dramatic. Thus, it reasonably appears inevitable that Tesco and the rest will follow so that ASDAs advantage is restricted to the one year benefit. With Walmart, the product is timed brilliantly with a movement to out-sourcing products in palce of in-store butcheries.

smallcapshares appear to have made the same mistake as Simon Cawkwell, making a judgement on a quick appraisal of one aspect of the finances - perhaps noggidynog (alias II) works for them!

Eric

Agree with your posts chaps,, and we don't talk about that insider guy , any way he's on holiday ,,lets hope its raining and he's got Turkey tummy..JB..

I agree with you all - and am staying put - and if at all drops for ANY reason will add in future. p/271
Eric -who is this -noggidynog (alias II) ?

Good post Pension271 and the right kind of "negative post". Not necessarily your own thoughts but an opposite opinion to ours to make us look over our reasoning again. Take Eric's Evolution forecast figure of EPS 3.3p, PEx10 = 33p at least. My earlier maths re-quoted, 10% hit on worldwide meat-pack market could generate 10p EPS, x PE10 = 100p. Doesn't take much to see the potential.
Add to that Frogpack, Biodegradable, water soluble and Ingel.
Yes >20p is a long way from 5.5p on Jan 3rd but there should still be a long way to go. There will be dips along the way and clever traders could buy and sell into profit or larger holdings. I will hold and buy on dips. I believe the magazine that you have quoted is very short-sighted, people pay silly money for exploration companies and bio-chems which are totally speculative. Whilst SEO is classed as a small share now, this magazine won't be able to offer advice in 2-3years time, SEO will be too big when this all comes to fruition. Just my opinion but see no reason to change that right now. Tony Ruane of ASDA remains confident and see's other opportunities for RF within the packaging of its products and I have to agree with him.

andysmith: agree 100% (as I usually do!)
pension: noggidynog is sd's name for the chap mentioned by jimmy b who we don't mention! When is a penny share no longer a penny share. Shares ran an article on penny shares including HCEG which had billions of the blessed things. Then thay do a 1 for 50 consolidation (I think) and they are no longer a penny share! lol! I suspect that advising on penny shares means that you don't need to do your homework so thoroughly as buyers have their tongues lolling out, like stockdog when he is thirsty or left in a car that is too hot!

Eric

Eric, I personally don't mind these people under-estimating SEO, keeps it low enough for a while until I have more dosh hopefully in mid-June!!
Quite happy with 20-25p until then.