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

aldwick: I have written to this effect to Ian Taylor and will report his reply.

Buy Stanelco
Argues Rob Cullum, editor of Trendwatch.co.uk
The share I'm about to recommend is a company pioneering several potentially highly successful new technologies that look as though they are on the verge of acceptance in the marketplace on both sides of the Atlantic. It's also a company with falling turnover, operating in difficult market conditions; currently making losses; and fighting a legal battle over a patent, which looks set to run for some time yet and may not have a favourable outcome. So I would categorise this as a high risk but potentially very high reward share.

The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. UK-Analyst is owned by t1ps.com Ltd which is regulated by the FSA and can be contacted at 49 Rivington St, London EC2A 2QB or on 0207 033 9389

The company is Stanelco.

Stanelco is a world leader in the development of radio frequency (RF) heating technologies - sophisticated and powerful but not so different in principle from your domestic microwave oven.

Its current core business is the manufacture of optical fibre RF furnaces that heat materials quickly and to the high degree of accuracy necessary for the production of fibre optic cable.

However, optical fibre equipment is now a highly competitive market. Consequently, Stanelco decided to cast around to see if it could capitalise on its RF expertise to develop different but related products.

Perhaps rather surprisingly, it decided to take on the packaging industry.

Its leading development is a new packaging system called Greenseal that could revolutionise the global cooked and raw meat, fish, salad and dairy packaging industries. Recall that, when you buy your meat from a supermarket, it generally comes in lidded plastic trays covered with a clear plastic film to seal it. Stanelco utilises its radio frequency (RF) sealing technology in conjunction with conventional plastics so that the lidded trays require no laminated or coated plastics for sealing.

Greenseal offers major environmental and cost saving benefits for the end user. By doing away with the sealing layers and specialist sealing coatings that current sealing films require, waste film can be recycled in the food tray manufacturing process instead of being scrapped. Total adoption of this technology in the UK would result in the saving of over 10,000 tons of scrap plastic going to landfill each year. This alone produces at least a 20% saving. Additionally, the RF process is significantly more energy-efficient, saving up to 70% of the power used by the packaging machines. And, not least, the integrity of the seal is higher.

Stanelco reckons this translates into an average cost saving per packaging machine of more than 0.1 m pounds a year.

A couple of months ago, following successful trials, Stanelco signed a binding contract with ASDA, under which ASDA will exclusively use Greenseal in the UK and Ireland for 12 months. Stanelco will retrofit several hundred packaging machines used by ASDA's suppliers. The cost of retrofitting is in the order of 40,000 pounds per machine, borne by the end-user. Thereafter, the user will be charged an annual licence fee of around 35,000 pounds per unit. There are currently more than 400 machines within the UK and over 2,000 machines in Europe.

The costs associated with conversion will be greatly outweighed by the financial and other benefits. The agreement with ASDA will generate a revenue stream for Stanelco of over 5 m pounds in the first year alone.

If you shop at ASDA, you may have noticed that the new packaging first appeared on ASDA's shelves from 1 March. Already, ASDA has found that customer sales of salmon in the new packs is up 21%, mainly because the Greenseal packaging looks more attractive and has virtually eliminated leakage. Independent microbiological analysis also indicates that the salmon's shelf life could be extended by one day. All of these factors exceeded ASDA's expectations. The two companies are already looking at all sorts of other ways to exploit the technology.

ASDA is, of course, owned by Wal-mart, the world's biggest retailer. The hope is that Wal-mart itself will come on board in due course.

Even if it doesn't, Stanelco has already gained a foothold in North America for Greenseal. It announced just a few days ago that it has entered into a binding agreement with Premier Technology Inc., a leading US engineering and support company, which will enable rapid roll out and adoption of Greenseal in a number of markets in the US, Canada and Mexico. This avoids the expense of Stanelco building its own marketing infrastructure in North America.

We also understand that Stanelco is in talks with many other potential customers here in the UK.

Other new, patented packaging products being developed include:

FrogPack, a lightweight, highly impact resistant, lower cost and greener replacement for padded envelopes and boxes with polystyrene inserts. The product has the added advantage of being tamper-evident. FrogPack is intended for to protecting items such as electronic components, car parts and compact discs. Tests have proved that even champagne glasses packed in FrogPack suffered no damage when dropped from 200ft. A Stanelco subsidiary, Aquasol Ltd, has signed its first two distributors for the FrogPack product, which is being manufactured under licence. An aggressive North American rollout is now under way.

Water-soluble tape. The tape substrate is coated with a unique pressure sensitive adhesive that is 100% water-soluble and 100% biodegradable. It can be made in a variety of grades from cold-water-soluble to hot-water-soluble. The face material can also be top coated to provide splash resistance if required. Potential applications include protecting highly polished surfaces against abrasion and corrosion, masking tape for the automotive industry, tamper-evident tape and wash-off labels for reusable food trays, crockery & glass.

Biodegradable containers, initially targeted at the food industry, made from starch foam by using RF technology. Stanelco has demonstrated that it can mould these containers ten times faster than using conventional heating technologies. Sainsbury is taking a close interest.

Water-soluble polymers for use in fine tolerance injection moulded applications. The primary application here is drug capsules manufactured by injection moulding from the water-soluble polymers. The capsule has unique features which provide improved control over the release of drugs

This last technology is the one that his given Stanelco its biggest problem. AIM-listed BioProgress is disputing one family of patents. It won the first round, but Stanelco has been granted leave to appeal. Knowing as we do the unpredictability of M'lud's pontifications, we wouldn't wish to comment further on that.

Apart from the legal spat, the main risk for Stanelco is that its new products won't catch on. That risk appears to be diminishing fast, now that ASDA has signed up for Greenseal. In any case, Stanelco isn't a one-product company - it's developing a whole portfolio of packaging products.

You might find it a little disconcerting that Stanelco's share price has already risen substantially. Have you missed the boat? Probably not. It generally isn't wise to invest right at the bottom. Better to wait until some of the fog has cleared, which it's now starting to do.

Admittedly the shares do look highly rated at present, on an eye-watering forward P/E of about 80. However, if the new products are as successful as Evolution Securities believes it will be, there should be plenty more upside to come. The broker reckons that sales will grow from 1.86 m pounds to 4.8m this year, and will then soar to 34.2 m pounds in 2006. By that time, it should have moved from a loss to a profit of 11.2 m pounds. At the current share price, that brings its present sky-high forward P/E down to earth with a bump. BUY.

Key Data

EPIC: SEO
NMS: 50,000
Spread: 21.25p - 21.75p
Market Cap: 187.4 million pounds

Apologies do not have time to pick and choose what to post here - thus the whole article. p/271

eric, i really don't know why you bother trying. anyone can see he is full of shite. andys, i had similar thoughts when i saw walmarts loss. what better way to please your shareholders than by announcing something that will save money and increase profits!! gotya , i hope you can back up your post and are not just going to hide behind the word "allegedly" like a wuss! we like to keep this thread free of false rumours. driver, i am really looking forward to next week.

GOTYA - 15 May'05 - 20:40 - 4059 of 4067

Insiderinside, the man using this id is allegedly Barry Muncaster.

Some will instantly realise that Barry Muncaster is now a paid consultant of Bioprogress. He has in the past been a paid advisor during the infamous seo V bprg legal case and was allegedly a major influence in bringing the case against Stanelco, having a personal interest in the case.

Whilst it is quite reasonable for any poster to provide an alternative perspective on a bb thread regarding a particular company, it is quite another to do so if you are in the paid service of another company directly involved in a legal dispute and your posts demonstrate a persistent and deliberate intent to cause harm/damage.

A legal court order etc will provide the conclusive proof and if it is you Barry the Lid will go on for a long time, RF sealed.



Gotya - I can hereby confirm that I am not the said Barry Muncaster.

EWR - as KBC are the official company broker and not like tipsters - it is a good starting point to base discussion on.

A SEO 2003 (Prelim 2004) Sales 1.9M Reported Pre Tax Loss 0.6M PER x -339.5
A SEO 2004 (Prelim 2005) Sales 1.3M Reported Pre Tax Loss 2.8M PER x -67.3
E SEO 2005 (Prelim 2006) Sales 3.8M Reported Pre Tax Loss 0.4M PER x -566.3
E SEO 2006 (Prelim 2007) Sales 15.4M Reported Pre Tax Prof 5.6M PER x 50

http://www.kbcpeelhunt.com/pdfs/Stanelco22Apr05.pdf

My long post on margins is very relevent - I even missed out the pending BPRG court case appeal as not wanting to be seen as too much against SE0 - rather just put a view on negotiation - what potentially Asda will want - and how things may well change.

Opinion is opinion - and everyone under their own freedom of speech is entitled to it - I make no accusation.

I encourage that people should not believe anyone on a BB - especially you and me - they should Do Their Own Research and look into the figures themselves - not rely on a bull or a bear to make judgement for them and put into it a nice little summary. Always should DYOR.

Some tipsters say buy and some say sell SE0 - this makes the case even more so for anyone to DYOR.

morning all. here's hoping for an interesting week and not a big yawn!!!

Morning bosley, im afraid im yawning already

Morning all - glag to be back from visiting my Brothers place near the Slimbridge wild fowl trust near Bristol.

Spent all weekend moving heavy rocks and climbing up trees to cut them down - should not be doing that at my age. Will need the rest of the week to recover.
Came back to another 60+ messages on this thread - this is getting really boring - although an excellent well balanced summary of where we are from Trendwatch.

Anyway - I see that SEO is already up - lets hope she just moves along steadily until the next bit of news - it does appear that more and more private investors are starting to realise the enormous potential of this little Gem.

Baza

morning baza. it does seem that way looking at trades. buys are mainly odd numbers which suggests private investors. also , there are some chunky sells today but the price hasn't been affected . price is up too, so it looks like the tit has done it again!! keep it up, fella!! whatever it is that you are posting, keep on doing it cos you are making us all money!!!!

Hoy, bos, that could well be a double fine for actually giving encouragement! My reason for posting is to give a balanced view for those who are not afficionados (good bit of Spanish, eh, to match my Rioja!) and might pass the opportunity by based on thoroughly distorted and unbalanced negative statements.

Eric

I wonder if II will still be spouting rubbish when the price hits 50p!

more than likely

As boley says the more he posts the more the sp rises, it would be quite comical if he were still posting when the sp hit 50p, maybe then the men in white coats would take him away. On second thoughts could someone ask him to start posting on NLR it needs a lift !..JB..

hes posting on TPA but it's not working! - there again - hes talking it up!!!

Someone on the AOL bb posted this, is this old news?
http://www.readymealsinfo.com/showcase/results.asp?txtContent=7430

Don't know if it is old news, but laser packaging has been found to be very un-competitive due to it costing more than the RF solution.

well at least we ain't on the bse!!(berlin stock exchange)

looking like the big yawn today!! off topic, i'm making a right pigs ear of this champinvestor lark. cannot do anything right, timing is all wrong and i'm down in the dungeons at around 743. how is everybody else doing?

Who told you that Sharesure ?? Paul ?? Laser sealing is cheaper due to no need for any tooling - so you get instant change of tray shape or size - not like heat or RF where the head is fixed to one size and involves time consuming changes of parts to change trays.

Remember these little promises of Jam Tomorrow in the past - and what happened ???

Now we have more promises of Jam Tomorrow again - take your guess - the price now includes over 1000 machines conversion orders - of which they have none at the moment. Even with a 100 machine order tomorrow - it is still massive Jam Tomorrow and trading on a forward PE thats higher than the sky.


Monday 23 August 2004
http://www.cityequities.com/penny_share_review.asp?issue=249
Stanelco (SEO.L) was one of the weekend FT's 'Stars of the week' following the deal with Robert Reiser to retro-fit RF sealing technology to its tray lidding machines. Reiser has targeted 100 machines for adaptation during the first year and an annual licence fee will be agreed for each machine. The shares were up 0.13p to stand at 6.13p.

October 13, 2004
Again on the upside, Stanelco edged up 0.25 to 4.37 after the company revealed its radio frequency (RF) sealing technology will be trialled for use in the tray-lidding machines at Oscar Mayer's food packaging operations.
If the trials are successful, the technology will enter into full-scale production across Oscar Mayer's entire range of tray-lidding machines in the UK.
Oscar Mayer, which supplies over 3 mln ready meals a week, has 30 tray-lidding machines in three locations in the UK.

Lots of failed trials in the past ???? Wonder why they have to go to the Supermarket and not the suppliers ???? Suppliers not like it and found no "real" savings in using it ????

Does raise lots of questions the past failures at suppliers and why the jump on to Asda ?? But IMO Asda just want it to push the supplier price down - leaving no room for big margins !!

Asda may in fact play the trump card here - they may want SE0 to reduce their margins and license fee so the supplier can give cheaper supply to Asda - maybe the suppliers might suggest that to Asda - why pay such a large license to SE0 - when if its lower - then Asda can benefit more from the savings - I am sure Asda want that - at the end if it all goes ahead that is.

What finished over on ADVFN,have we ,you must have one hell of a thick skin..