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

50 tick MA moving up through the 200 tick MA is a good bull sign. The Golden Cross requires both to be moving upwards at the same time. Could SEO finally be on the verge of a breakout? Let's hope so.

Lord Gnome

Sorry if sound thick but only been at this since Feb'04 and know sod all about the charts, what is a golden cross? and what is lol?
What I am sure of though is the fundamentals of a good product with a market need and good earnings potential and Stanelco has this.
Once the earnings are apparent, watch this one fly, can't wait and topped again on 31/12/04. Couldn't resist chance to buy at 5.45p, might be the last below 5.5p?

Andy,
I like good fundamentals to buy a share, but I am also into Technical Analysis (the charts and stuff) as this tells me when to buy and when to sell. A 'Golden Cross' occurs when the 50 tick moving average moves upwards to cross the 200 day moving average which is itself moving upwards. This is about as good as it gets for buy signals. To see one, take a look at the ENO chart. There was a golden cross on 9th December - I bought these on the back of it (plus good funamentals of course). A Golden Cross usually precedes a major sustained bull run on the shares, which, can sometimes see a share price double. this is why chartists get so excited about them.
The opposite is a 'Dead Cross' when the two moving averages cross each other with both on the way down. If you see this, avoid the share.
Hope this helps.
By the way, LOL is crap net speak for Laugh out Loud.
ROFL = Roll on floor laughing
DYOR = Do your own ramping (er.. I think)

Thanks pond-life, I now understand alot more about charts and the one phrase I had guessed but still wasn't totally sure of.
I have been with SEO throughout all turmoil before and after cc and fundamentals of product/market are sound. If the analysts charts also look good,great, If this does as well as I've done on IDS I will be chuffed but I think it could do even better and be a multi-bagger this year.

Pond Life

So thats what you get down to when below water - ROFL! (or RIPL?). Helpful to meet someone who operates with these things. A couple of points. Looking at ENO chart wouldn't the indicators have signalled a buy in November with effect that you would have had more of the uprise. My point was that SEO 200MA, which is currently horizontal, will turn up as MA50 rises. Perhaps, even if not clearly bullish, the SEO chart should be seen as reasonably encouraging. The only nigger in the woodpile remains the legal action but management seem confident that positive events will help the company forward.

Eric

Eric,
Greetings from the lillypad!
I agree that the SEO chart is indeed good. The fundamentals are also excellent. A breakout above 7p could see the shares rise rapidly into double figures. The court case with BPRG is a major distraction. It will hold back the share price until it is resolved.
As regards ENO, I like to look at basic chart patterns, and the basic oversold / overbought indicators. I am not into all the fancy stuff. I like things nice and simple. For me, after the bear cross when the 50 day SMA moved down through the 200 day MA, this was one to leave alone. I am happy now that ENO has enjoyed a Golden Cross, with a chart breakout backed up by a series of directors buys. This is a serious opportunity. DYOR no ramp intended.

Pondy.

Lol at DYOR. Not quite the correct definition, but a nice alternative!!
Also ROFLMAO. Rolled over from laughing my arse off.........

DYOR, DYO research

Prefer Ramping
;)

price holding steady even with the changes. looking good ... and i do so hope it is a golden cross. would be good to get a bit of a bull run going.

Has any effort been made to compute the potential revenue from ASDA if the trials are successful? Just finding it difficult to get a handle on what this company is really worth. Other question is whether we know date of results - January last year.

Eric

No one seems sure at present but if we get the court case out of the way then I believe we would see new highs on this share...

ewr...virtually imposible at this stage...it would be nice to see at lest one trial completed successfully...bio degradeable must become an issue soon in the super stores but who will start the flood and which company will reap the bonuses...I notice the co-op are now using degradable plastic shopping bags any one seen use elsewhere?

tipton, AdieH, bosley

"...we expect to see an increasing level of sales for machinery and royalties based upon copst savings and added value out technology brings to new applications." (interim statement). I'm still trying to get a handle on revenue and profit potential. The plus is the mention of royalties. Lets take Oscar Mayer as an example: they have 30 tray-lidding machines in the UK. The work to modify thse machines may not be all that expensive so the plus will be the royalties. But that leads to the minus, or at least query: the cap. is 47m on last year and the interim turnover 320K. S o the key question is whether a deal like Oscar Mayer runs to millions or is it 'merely' the odd hundred thousand?

So I can't decide whether SEO is very expensive or very cheap - I feel it is one or the other! Help! Help,please!

Eric

Robson,

From the figures I have seen regards retrofitting and license fees I believe Oscar Mayer if they signed a deal would look something like: 30 x (40k+35k)=2.25m. I'm not sure how much of the 40k for the retrofit goes to the bottom line. This is very rough of course as no contracts have yet been signed to see if the 40k and 35k figures are accurate. I guess we'll have to wait and see.

Biscuit

Biscuit

Thanks for that which is very helpful (takes the biscuit!). Are the figures based on SEO or on parallel situations? In any case, its the first time I have seen any projection. On the high side of my expectations. The licensing must go straight to bottom line. I expect also that costs for machines after the first one are less but that the client is happy to accept a possibly inflated charge given the savings and improved quality. Presumably the volumes and revenue from ASDA would be much higher?

A 500K trade which looks like a buy as the price has risen on otherwise adverse volumes.

Eric

Eric,

The 40k for retro fit and the 35k for licenses came from the article in Shares Magazine last year and as I remember I read it in the Hardman & Co sponsored research which I can't seem to find now! I believe the avarage saving per machine was estimated to be about 100k per machine therefore the license fee is more than paid for by the equipment itself! We'll obviously have to wait until some contracts are actually signed to see how accurate these figures are but I doubt they'll be too wide of the mark. I'm interested to know what is happening with Anglo-Beef Processors and the "Major Retailer" that were carrying out trials in the RNS dated 16th July.


Biscuit

Biscuit

Thanks again! Taken the biscuit again! SEO was Play of the Week in Aug 19th issue, before they hasd caught my attention (Buy at 4.5p). Your figures are correct with the royalties being paid annually. There is an example of how the royalties from the Robert Reiser US deal are $400K annually, all to the bottom line! Hardman forcast sales of 4m for year to October 2004 and 12m to October 2005. Share price had dropped from 6.25p, probably due to BPRG case, but Shares dismisses this as no longer important. Expects figures to be beaten: they would not include Oscar Mayer for instance.

Questions answered! I suspect I may be into SEO tomorrow!

Eric

Hi Eric,

I am not sure 'Shares' are correct about dismissing the BPRG CC issue. I myself will stand aside until I see the damage claim level about to be submitted to the CC by BPRG. As it stands SEO do not have a lot of cash to hand so a high damage claim could impact operations! Anyway just my thoughts!

John

I have bought in but not for the maximum amount I would like as I am awaiting clarity about what the ball park figure of damages is going to be (if any) I think the main question is: which will come first the contracts or the damages, I beleive SEO will try to drag out the CC for as long as possible so that they can get ASDA etc onboard and a definate revenue stream in place. Once I have clarity around any value of damages I will decide what my final position will be.

Biscuit