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

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."

Thanks lukan, I may have a look at RHPSG. Pity seo does not adopt bio-degradable products such as all of its packaging and possible the trays that the meat etc is put in. sym could make a bio-degradable bin bag and call it 'Bio-Bag' (TM to wilbs 2005) that the householder could put all of their bio waste in which is then taken by the bio-bin men to a bio landfill!! Cuts down on waste & energy.
Now where is blairs number....
wilbs

Yes,, Wilbs
But first you'd have to buy-o the boy-os who empty the bin-os to come round often enough before the bag-os have dissolved into C-O2s and H2-Os.

lukan,
you are getting all technical now, I just saw my dream fly out the window. By the look of the boy-o's who come to empty my bin'os are not very bio.Oh well,back to the drawing board.R.I.P 'Bio-Bag' (TM to wilbs 2005).
wilbs

seo had a rights issue not too long ago. it certainly didnt affect the price negatively. i am not saying they are planning one for the near future , its just seo are quoted as saying they are not looking for a rights issue but i cannot find anything official from seo saying this. felt disapponted with the slight drop today but i shouldnt be really. it just felt so good to break away from 7p. you just wanted it to go on for ever. as far as i am aware the beauty of seo is that its products are biodegradable.once asda (hopefully) sign up for the sealing process they may then take on seo's starch trays.and then the bubble wrap for the electrical items.and then the edible sachets for the soup and coffee.... oh it goes on and on the possibilities......

bosley

I don't see any reference to a rights issue in the alst year. There was some 400K investment from Cardinal Health which Balchin said would be applied to commercialising their R/F technology. Re the bio-degradable issue, they do not describe their R?F packaging as that but it may effectively be the same thing. I expect Andysmith or Dynamite can elucidate.

Eric

Eric...Sorry I have never really got ino this area...Maybe Andy will know?
ON Stanelco website www.stanelcoplc.com they descibe the bubble packaging as dedradable but also under Adept Polymers they say that there thermoplastics are also biodegradable. You also have the 'Starpol' edible food packaging and you cannot get more biodegradable than that and again the gelatine capsules.Then there is Aquasol- water-soluble packaging. The one thing they do not say is whether the Radio Frequency solution is degradable but I take it that this could apply to their Adept Polymers which are degradable but other films also.

Hope this makes sense.
Di

I beleive due to the RF sealing the actual CPET trays that microwave meals etc go in no longer have to be laminated as was required with the heat sealing ( the heat could cause contamination of the product). The lack of lamination required for the trays means that they can then be recycled which the lamination prevented. I believe ( although not 100% sure) that Stanelco are also working on starch based trays which can be manufacted up to 10 times fasted using RF tachnology than using heating and are recyclable. I also think that most other R&D has been put on hold so that the existing cash that SEO has is put into commercialisation of the RF sealing technology. The tachnology that SEO appears to be pioneering does seem very exciting and in some ways quite revelutionary! Of course this is all just my humble opinion. DYOR