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

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

john, Biscuit

There has been a lot of dialogue re the cc but I don't think anyone has tried to put a price on the damages. Its not as if SEO were doing much business in that area. Surely the figure needs to assess what BPRG might have lost and/or SEO might have gained?

The other point is that there could already be a healthy cashflow in their RF products. The failure of the sp to progress appears to be overdone. The sp came back 2p on the cc and could be 2p behind schedule. That's some 16m which seems away too much.

Eric

EW, on the cc, SEO have currently done no business in that area, trials with Ingel/Cardinal only so damages will only be for use of information and not that high in my opinion.I'd rather focus on the future packaging technology and it is just that, technology licences and retrofits for something wanted by the industry and retailers alike. ABP will probably be Sainsburys from memory and Terry Robins is ex Sainsburys. Just leaves Tesco/Morrisons to come. I was lucky to top up at 5.45 on 31/12/04 not sure I'll get at that price again. One good RNS re: Asda and we should be off and sprinting.
Glad to have this in my portfolio.

Eric, Andy,

Firstly the damages...clearly we do not really know what will be claimed or awarded yet. We should (I am told) have some idea of the first before the middle of this month.

Secondly, the SP seems to be in range (reading charts of these penny stocks is a hostage to fortune IMO!), of support at 4p (3.8p using Bars), and resistance at 6.4p. Depending on a good RNS and CC settlement, we could see the SP break out into a new range. Both RSI and MACD supporting upwards SP at present. If it was me I would wait, and I will.

Good luck tomorrow if you are thinking of buying more!

John

Just broke through 6.4p...

please , please, please stop the talk on possible cc damages claim settlement figure. the truth is nobody knows. so lets just wait and see and follow andys lead and focus on whats important.... the packaging. buy now , put away. there may be one more buying opportunity when (eventually) a final figure is decided. if you want to wait until then , its upto you. but, imho, after that these prices will be laughable. ( i hope). dyor.

john

Funny that, me talking about buying on technical analysis and you urging caution based on fundamentals (court case). lol! indeed, ROFL!

In fact, bought initial holding today based on helpful analysis in this column, particularly finding the Shares article. By gum, they get 35K royalties per machine PER ANNUM. Took out CFD for 125K first thing at 6.25 but baulked at the second tranche at 6.50. Seeing the days trading, purchased second tranche of 125K at 6.50. Poised for push through resistance level of 6.4p and then its chocks away! Thanks Bosley for promoting the share and Biscuit for pointing me to the write-up.

Eric

No probs Eric

An interesting Link you might like to read.
http://www.packworld.com/articles/Related_Articles/14472.html

EWR,
Welcome aboard, I doubt you will be disappointed in the end and could be a rich man with this one. For my sins, my day job is in packaging and this innovation is going to be huge for packers/retailers and SEO plus its holders.
The cash generated should also allow SEO to focus more and drive through their other innovations such as biodegradables. I think we are in at the start of something massive. Focus on the future.
Up to 6.4p today on no additional news, maybe at last being taken seriously?

Another little tick up tomorrow and we are in breakout territory - uncharted waters. From here there will be little to stop a rapid climb towards 10p.