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

http://www.foodproductiondaily.com/news/news-ng.asp?n=60495-stanelco-buys-biotec

Packagers moves: Stanelco buys Biotec, Berry buys Kerr

07/06/2005 - UK-based Stanelco said yesterday it has acquired Biotec, a company based in Germany that makes starch-based polymer packaging for the food and pharmaceutical industries.

Stanelco, which markets a method to seal plastic food-tray packages using radio frequency technology, said the $25m (20m) purchase from E. Khashoggi Industries would give it access to Biotec's proprietary pharmaceutical grade film. The film can be used to replace conventional polymers such as gelatine.


Stanelco currently uses Biotec's starch products for making food trays, air pillows and edible packaging. Biotec's film has a cost base of between US$5 to US$8 per kilogramme, a cheaper alternative to gelatine and other materials.

"Biotec is one of the world's leading exponents of starch technology and has a considerable intellectual property portfolio, including many patents, extending to uses in pharmaceutical and edible applications," Stanelco said in a press release. "It also has ranges of products that are ready for commercialisation within the food and beverage industries."

Biotec portfolio of products includes thermoplastic starch, which can be substituted for petrochemical based plastic packaging. Stanelco said its radio frequency sealing technology can be used to process starch polymers without the degradation caused by other methods such as thermal processing.

Stanelco's chief executive officer, Ian Balchin, said the purchase will help the company develop alternatives to petroleum-based packaging.

Currently APET/PE sheet for making food trays costs about 1.70 (2.5) per kilo. Stanelco hopes to bring the price of the Biotec packaging alternative down to about 1.80 (2.67) per kilo, he said.

"I believe the acquisition positions the Stanelco group to take advantage of this rapidly expanding market place and specifically it will enable Stanelco to offer its product ranges that contain starch product at up to 20 per cent less than is currently available," Balchin said.

The acquisition also creates a further barrier to entry for any company hoping to compete with Stanelco's radio frequency sealing technology, he said. Biotec's managing director, Harald Schmidt, will have a three year service contract with Stanelco and will remain as managing director of Biotec.

Biotec also makes polymers for injection moulding and film extrusion used for packaging and disposable cutlery. Last year Stanelco acquired the assets of Adept Polymers, a water-soluble polymer manufacturer.

Balchin said that with the rise in oil prices, the cost of petroleum-based packaging materials is increasing faster than alternatives such as starch.

As reported previously in FoodProductionDaily.com Stanelco use of radio frequency technology to seal plastic tray packages of perishable food was launched in the UK in a trial partnership with the ASDA supermarket chain. In May the company opened an office in Orlando, Florida in a bid to target ASDAs parent company, Wal-Mart, along with Albertson's, Kroger's and Safeway.

Have just topped up with another 63000 shares and once again there not showing on moneyam.My broker is T.D.Waterhouse,could someone explain why there not showing?

driver, what email?? what request?? are you having one of those days again?

Pisces Hi,

Well done !

They must have a system that sends the trades later on, maybe they only send their trades every hour or every 30 minutes.

Cheers,
PM

Bit of a rollercoster ride this morning. I imagine lots of folk will have been shaken out today. For the majority of the time the MMs were soaking up the sells quite happily. Time to keep one's nerve, nearly lost it at one point, but kept reminding myself of the potential. Any company that splashes out $25 million is obviously very confident of their own future, so why shouldn't we be?

Yes I agree pth, I been here a while now and was tested this morning, but like you I've held my nerve and hopefully it has bounced

Added a small top up at 22.75p.

Don't understand why people sell after yesterday's news - only know that they do, but the fundamental value of yesterday's news will out in the end (and quite soon, I anticipate).

BTW, Mr Kashoggi's ex brother in law is none other than Mohamed Fayed who owns Harrods. Do you think they will be using the new tray lids and going biodegradable with all their packaging?? Fat chance, I reckon!

sd

Topped up four times this morning - again through TDW - only two showing in the buys so far, on Moneyam !!! Agree with you pth - patience will pay well , in not too distant future.
p/271

pisces

TDW aggregate their orders. yours will show later i expect as part of a larger trade. might even show as a sell.

trades with TDW and Natwest are often dealt with on Swiss market-mine didn`t show either

bos
I have sent you an email through Moneyam it some times take s a while to arrive just check your box.

oooohhhh!- wonder whats in it????

Out for a day and a half and 1 1/2 hours to catch up! At least I avoided the unpleasant vibes from the falling price. Knowing me, you would expect some sort of summary so I won't disappoint!

Firstly, the acquisition: (1) the key word is 'turnkey', the ability to offer a total solution to clients: rather than just the R/F machine, including the materials. This adds significant to the sales value and brings on-going revenue. (2) cost is actually very minor compared with what is brought to the act: under 3% short-term; even if equity, this is equivalent to a good day's trading. (3) liked Alan's comment re GREENSEAL as cash cow in creating broad based company in packaging sector

Well done to those with nous to add at lower prices: sd, pisces, pension. Seq. called this wrong I think but 'join the club!'. baza wants another RNS and jimmy wants sales. But we've just had another RNS and this gives an update on completion of second trial and positive note re shelf life (driver: please note). My view is that the story is gradually unfolding - miracles take a little bit longer! (e.g. lazarus sd coming back to life!) The sp has gradually eased back because of 'hot money'. The move from the 20p to 23p trading range was actually made on unsubstantiated rumour re US deal. Seq. may have it right that the 20p support level may be tested again. So there is opportunity and risk for the traders. But the new acquisition underlines the opinion that SEO is not a one-product wonder but is laying the foundation for a major operation able to trade as a provider to the major supermarkets worldwide. So what I am extremely confident about is the medium term prospect for the company and its sp.

I note that Evolution leave their price target at 30p 'until we can see more clearly the speed of adoption of Greenseal. In the medium term Biotec may have a huge impact. In the short term it is not really a factor apart from triggering a relatively small placing'.

Eric

seq
What's going on in balamory?

Hey,

Back on this thread once again... was waiting for the 20-23p range, looks like I might be seeing it this week! Like I said knew it would fall back to this level in the short term however long term (this will be a long lost memory... 1-2 more likely)
Will get back in sometime next week, if this continues and great work to the SEO team for the potential acquisition!)

Sound company, great investment potential... however DYOR!

sidtrix. my sentimenets to. Good company, great potential & DYOR.
Reasearh is all done for me for now! This is one I have in a maxi ISA and have talked the enemy around to getting in. She has followed my advice fortunatley.
Hopefully it will cover part of the retirement costs.

Regards,
Sambal

We should see a continuation of this downtrend for the rest of the week - the MMs have to sell back what they buy in - so a pattern of mornings down and afternoons up a bit or mornings up a bit with afternoons down may well happen - overall trend being lower.

This purchase of Biotec just adds far to much risk to an already highly risky stock and further dilution for the funds to pay and also working capital should be expected - this is also the period of going in to interims which will show a heavy loss IMO.

They will need to raise extra money to ensure their ability to service the debts of Biotec (as it is a loss making company in debt) and also the court case with BPRG and breach of confidence is still in the near term future.

I still see many people hoping for a trial update - why oh why ? - the trials were only relevent to the Asda deal - this is now in place and 1 machine ordered - so the results of the trials mean nothing as the Asda deal is already commenced - and given the trials are potentially on consumer unfriendly Cut to Open RF welded lids with NEW on the front - what purpose do the results show to anyone ?

Will we see a return to the 18p level at the end of the week ? who knows - lets see.

Here is a question for you - which may help some to understand -

Biotec owners wants to be paid IN CASH !!! It says all over the RNS - CASH - CASH

Why ?

If SEO shares are going to rocket to the heavens why would they not take payment in SEO shares ?????

Funny ?

Perhaps they know something that PM1 does not - and want CASH !!!

cAN`T TELL YOU DRIVER, ITS TOP SECRET.

ii, i sure hope it comes down to 18p (based on people's misperceptions and impatience), cos it'll be cheaper to top up at that level, than the current 23.75p.