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

Good job I am in then!!

Very interesting catching up on the last 20 posts after a day away in the big smoke. I am one of those with a tendency to stress the positive when I have a significant holding - after all, I am a holder so I have come to the conclusion that the positives outweigh the negatives. In this case, the charts are hugely positive - even the last couple of days when the share has trodden water, there has been strong net buying. I admit to being puzzled about the motives of those who clearly over-accentuate the negatives, such as Poverty. Are they de-ramping because they have put options, or the equivalent, or is it just a pessimistic nature? The claim that the sp cannot possibly rise more than 2-3 times appears to be a case of damning with faint praise. No rational argument is made, whereas the argument for higher levels has been argued clearly on this thread and in Shares magazine.

Having had my gripe, there are questions which are worth putting. Given that the cap rises 10 times to some to some 600K, what will the corresponding rise in sp be? - the key determinant is the amount of new capital that will need to be injected. Views? I also accept the point that the level of royalties will be under pressure within corporate deals - my answer to that would be that the royalties flow is in no way reflected in the current share price.

Eric

Added again today cant wait for the dip its holding up to well, if there is any positive news in the next couple of weeks it will leap or even lurch up.

evening all. just been re reading the last 30 or so posts. going to re post 586 from sellsell

Small Caps: Round-up of big-moving small companies
By Philip Stafford and Chris Flood
Published: January 25 2005 17:29 | Last updated: January 25 2005 17:29

■ News that Robert Boardman, formerly finance director at Durlacher and Altium Capital, had joined Stanelco as its finance director raised investor's interest on Tuesday. Mr Boardman's previous experience with Durlacher where he oversaw a major equity issue led to speculation that Stanleco, 1.5 per cent lower at 8p, is planning a similar rights issue. Stanelco has adapted radio frequency technology to food packaging. Trials with Asda are running currently and five other companies are rumoured to be interested. Stanelco denied it was looking for a rights issue and said Mr Boardman would help take the company through its current stage of development and help to release its full potential


where did philip stafford and chris flood get their information? who are the five other companies rumoured to be interested? and when did seo deny it was looking for a rights issue?
this was seo's rns about the appointment


Stanelco PLC


Directorate Change


Stanelco PLC ('Stanelco') is pleased to announce the appointment of Robert
Philip Boardman, 31 to the Board as Director with immediate effect. Rob will
serve as Finance Director from 1 February 2005 when Barrie Hozier, the current
Finance Director moves to a non-executive role.


Robert joins Stanelco having been Finance Director at Durlacher Corporation plc,
where he oversaw a major equity issue and the takeover of webangel plc. Prior to
that, Rob was at Altium Capital, where he was Finance Director of the leading
corporate finance and securities Group. Robert qualified as a Chartered
Accountant with Arthur Andersen in 1997.


There are no further disclosures to be made pursuant to rule 16.4 of the Listing
Rules.


Ian Balchin, CEO of Stanelco commented:


'We are delighted that Robert, who has excellent PLC and City experience has
accepted this position and strengthened our Board. We look forward to working
with him to help take Stanelco through its current stage of development and to
release its full potential.'


Robert Boardman commented:


'I am very much looking forward to working with the Stanelco team. The
technology platform is extremely exciting and I look forward to helping derive
maximum value from Stanelco's intellectual property.'


no mention of any other companies being interested and no denial of future rights issues. i do like robert boardmans quote, especially the last line. i think that confirms that seo's packaging technology is theirs and isnt conected to the dispute with bprg.

bosley

Definitely the hero of the hour; would we be here without you? Its good to read comments like "five other companies are rumoured to be interested". As you would expect, if Asda are close to successfully completing theri trials, their competitors won't want to be left in the starting blocks.

Decent volume today with buys up 3:1 on sells. Interesting that the price didn't move all day which suggests that the MMs have some stock tucked away and are happy with the volume as it is. Broker transaction of 500K shares after hours at 5.23 called as a sell but probably just brokers moving shares between them to balance the books? Indicators still very positive. Just needs that positive announcement to get the price moving again. Sitting on 100%+ profit on CFD's at 5:1 gearing but loathe to close any position prematurely. Just have the feeling that this is just a pause for breath.

Eric

Eric,
I totaly agree with what you are saying. It is always a pleasure to read your thoughts and opinions. What is your thoughts on a possible rights issue? seo will need extra cash if they suceed in signing contracts with the supermarket giants.If asda sign then I am sure they will all want to follow? With the volume of shares traded today I thought the sp would of ticked up a bit but obv the mm's are on to this and see the potential of seo and what they have and want some for themselves. Just like CSH & COP. The next few weeks leading to a possible RNS will interesting to see what the mm's do.

wilbs

wilbs

Thanks for kind comments. Diana or andysmith might be in better position to judge the needs for a rights issue from the standpoint of the manufacturing processes: it appears that much might be done by retrofits which might limit the amount of their own space needs. They had about 850K cash at end-April; don't think they've raised funds since; that's not much and they could be needing additional funds. They need the sp up first so that dilution is not too great. A 1 for 5 bringing in 10M should be able to be absorbed. The problem tends to arise when companies like YOO dilute too much in takeover activity which is hardly on SEO's agenda.

I am puzzled as to why the price didn't move a jot today. It would appear that one or more MM did have a deal of stock and transferred some at the end of the day. But your comment that the MMs want some for themselves seems to work the wrong way: surely they would normally want to encourage two way trade and move the price accordingly. If the buying persists tomorrow, as seems likely from the charts, it seems inevitable that the sp must rise!

Eric

Eric,
Maybe the mm's want the stock to fulfill orders? Fron the meetings that seo had with instituions last week and the fact that they were impressed with what seo had, maybe the mm's have an orderbook to fill and by not raising the sp, investors will sell as there is no sp move like there was at the beging of the week?
I am a novice at this compared to most of the posters on this thread and others that I have an interest in so please correct me if I am wrong as I am wanting to learn and pick up what I can from others. If seo did a rights issue what affest would it have on us shareholders? More shares would dilute the current amount of shares and bring the current sp down? If so, to what level?
Sorry if this is a simple question but we all have to learn somehow.

Thanks for your time eric, by the way, how is mrs eric now?

wilbs

As a novice myself I have participated in a few rights issues, they are not always a bad thing if the rights are taken up fully the city takes note and even though the shares are diluted a bite the share price can often rise. In my novice option that is.

wilbs

Your explanation, though, seems to imply that the MMs are building up stock to satisfy institutional orders - but this would seem to imply that sells should predominate; it that happened and the price didn't fall then it sould be that they will deliver later, I think in a T trade, to their institutional buyer later. So I feel we still haven't solved the problem.

Re a rights issue, it depends how it is handled and how big it is. MLS (Medical Solutions) offered shares as a rights issue on a 1 for 9 basis to shareholders alongside a placement to institutions which sweetened the pill a bit. YOO left shareholders out altogether and there was a heavy dilution which had shareholders up in arms; to no effect of course. But both those situations were doubling, or more, the share capital. My view re SEO is that funds will only really be needed to plug a gap: the faster they expand, the more funds they will need. They could decide that the equivalent of a bridging loan could do the job; particularly if they see it being paid back out of profits in two or three years. Even if there is a placing, perhaps combined with a rights issue, I think it will be relatively small; say 1 for 5; which wouldn't be too bad for the shares. Now, they've denied that the appointment of a Durlacher man has anything to do with a prospective rights issue. But they could well know they will need more funds ant it is up to the new man to decide how to do it. If he decides on a share placement / rights issue then he will want the sp much higher first! That is only good news!

Many thanks for kind thoughts re Mary - a flurry of ultrasounds, consultant, visits, etc. (something each day this week) but I suspect it will end up with the gall bladder being removed - with keyhole surgery, its a fairly straight forward routine, I gather.

Eric

Re the above

I think I will just read instead of writing about this stuff Im out of my depth.

Eric,
Many thanks for your reply. You have answered many questions that I did not have the answer for. I did not have a clue about rights issues but you have now made me understand it more.I guess all we can do I sit and wait. I was in yoo but got out but may enter again soon as I think they will be a flyer.
I hope you dont mind but I will have many more questions for you and others on things I do not understand.

Regards,

wilbs

That's fine wilbs. Major reason for these boards- it also helps to sort your own viewpoint out.

Regards, Eric

With the buy to sell ratio still so high, why is the price dropping? I don't understand the stock market very well as this is my first investment. Any help much appreciated...

Folks, just got back from cold/snow bound Germany and reading the posts above it seems more info is needed. Many questions, my only question is WHEN to top-up. Timing is the essence, I got it right on 31/12/04, the last dip, surely can't get it right again. anything bought for around 7.50-7.75p before the news would be good but will we see it? As for a rights issue, I don't know. One observation though, since September Mr Balchin and others have taken a lot of options and sold straightaway. This raises cash for the company and although it might look as though they are getting rich, not half as rich as if they had held because they will know the potential. With my glass half-full head on I believe that they have raised cash through their options to fund this rather than go to the shareholders which might have given the wrong signals.I would reckon main need for funds depends on cc damages but I doubt >500k. All of the above is just opinion, the only fact is that this technology works. Busy old thread these days this one. BPRG will not kill this radio star!!

andysmith

That's a helpful post. Another positive trading day and charts still very good but price slips with broad spread. Suspect the MMs may not know how to play it! Good point on the options; effectively holders are taking some cash but also effectively putting money into the company. Suspect also that company may need funds for expansion as well as cc: its one downside of take-up being quicker than expected that cash needs rise. Loan funds are relatively costly whereas share capital costs next to nothing. Fine, so long as the issue isn't large enough to affect investor sentiment. I get the feel that SEO directors are nice pople, unlike YOO, and won't forget their loyal investors!

Eric

Reference to Wilbs' post of 25th Jan - could be fun to see a merger [of interests] between SEO and SYM (Symphony Plastics) who make bio-degradable plastics for supermarket bags for Tesco's, Co-op, Somerfield, Quicksave, Saudi Arabia and Columbia.

RHPSG rates SYM a buy up to 17p (above that currently) and SEO a watch until more certain - you guys don't seem to need to be any more certain.

I'm in at 8.125 as of today - couldn't wait to dip below 8, as my head tells me to, but then I'm all heart!

Good luck everyone.

Sorry if this has been mentiones, is the packaging that seo have, bio-degradable? It would be great maybe to see the two merge as they both have great products, but cant see that happening. lukan, what is RHPSG? Excuse me if it is obvious.
wilbs

RHPSG is Red Hot Penny Share Guide monthlt, with weekly email updates - it covers quite a few of the hot stocks posted on MoneyAM - just started subscribing to it - quite like it, except of course you can never get in at the price they publish, especially with the mail arriving after we've all left for work these days!

My understanding is SEO do NOT use bio-d materials, just less and lower energy.

A recent "Note to Editors" states: "-Stanelco has been applying its technology (R/F) to other markets; current developments include biodegradable air cushion packaging, sealing of low-cost conventional plastics for food packaging, water-soluble detergent capsules, foamed starch trays, edible sachets and waste packing."