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

or even "holdhold" might reflect actuality more acurately!?

I thought today's announcement and the EGM news was spot on. You get to the top of the mountain not so much by what you do as by the fact that no one stops you. When was the last piece of "stopping" news froom SEO? They move onwards and upwards - remember they are not trading the share, they are adding value to the business which is what I have invested in.

aldwick, I'm interested to see if you called it right - possibly, but I'm backing the incipient break through the 22p resistance, having just about conquered and sustained the 50dma today.

btw - I read both those 4m trades as buys going through at > 21.125 which was mid price at close of business today - what else supported the SP consistently above 21p in the face of all those other sells, do you think?

sd

the news was unexpected ( by me at least due to the real slalwarts attending the egm.......I MEAN.....what a kick in the goolies to release an RNS when peeps are on the train scoffing their marmite sarnies ). i took this opp to exit with a rather nice profit. if i cant buy back cheaper so be it......but BUY BACK i will when the conditions are right.

ok Bos, I think I have a good idea where the BBQ sauce should go!! Unforutnately the RNS wasn't a short term ripper, but I remain confident that all the building blocks are being assembled.

pth

My take on todays meeting:
Present: Ch. Philip Lovegrove, MD Ian Balchin, FD Robert Boardman, Co. Sec.Robert Duggan. The rest out there somewhere getting in the business.

Biotec resolution and other resolutions passed easily. Confirmed that SP Metal take half the debt of Biotec and that SEO retain a golden share, so control events.

RF sealing: 5 orders for retrofits; each new machine providing a reference site for future orders. ASDA committed to helping SEO secure 200+ conversions within the exclusivity period which ends on 27/8/06. SEO really pleased at the potential for the Mondini deal because they will be manufacturing an RF machine and selling into an annual marketplace of 6000-7000 new machines. With a winning technology I would have thought it reasonable to reckon they might get at least another 200 machines (approx. 3% of that new market). SEO confirmed that those new machines would all attract licence fees in the same way as retrofits. Others may think I am being too conservative; certainly SEO werent going to be drawn on that, perhaps because they genuinely do not know either.

SEO get paid 1/4ly in advance on retrofits so cashflow position for that work, as and when it speeds up, is good.

SEO confirmed that the company has sufficient cash for the next 18months without any further orders coming in. (Very unlikely to be tested on that front, I think )

Walmart: slow progress. Walmart have HR considerations to surmount in order to do what they want to do, ie move away from in-house butchery (!). SEO talking to many other supermarkets in the States, so pressure should build on Walmart to decide their position or risk losing out.

Bioprogress court case: not now taking mgt. time but still an irritation. I got the impression that it really is an unwelcome, but fairly insignificant, sideshow.

Where now??? My impression was one of a mgt. team really pulling out all the stops to capitalise fast on their technologies; possibly slightly disappointed at how long it is taking to get the message across to Asda suppliers, but very much expecting a snowball effect as and when other retrofits take place. The big unknown, but possibly easier money, may be made on the Mondini deal where they will be doing most of the work.

I hope that gives a fair account of the extras I got from attending the meeting but Baza can fill in the gaps or add to this as he was working the tea & biscuits time separately

Aldwickk, I think you sell is going to cost you.

The RNS was not a ripper because people do not understand the significance of this. Cargill have agreed to supply SEO a main component of Starpol at tonnage and price to allow a competitive advantage for Starpol versus conventional plastic packaging. Biodegradable has so far failed to take off due to non-competitve pricing and inertia amongst most retailers to grasp the nettle and change concepts where it is possible and appropriate to do so. Once a market has been created and established this will benefit, Cargill, SEO and the retailers who adopt it. We've all seen the oil price and felt the affects in our wallets and it won't get any easier, get used to $60 a barrel folks. With environmental issues getting stronger and stronger Starpol could make SEO the next Tetrapak. Tetrapak is well known because they added something different, Greenseal is good and will be a good earner but Starpol has real ability to change many aspects of packaging.

What will happen to the sp? Depends what peoples expectations were and on their position re:investment. Todays RNS saw many PI's take their profit due to 5 machines so far, what did they expect 200 already? Greenseal total 05/06 is worth the sp alone so IMO SEO is still relatively cheap although it could drift depending on the market reaction. No surprise to me to see large 4m BUYS at the end of the day, mopping up lots of sells at just above 21p. The people with deep pockets recognise this is a sound INVESTMENT for the years ahead.

All of the above is just my opinion and although the RNS didn't create the fireworks that Greenseal articles and potential profits did back in February, I honestly believe that Starpol will be what earns SEO its future in packaging.

sharesure, thank you very much for giving us your thoughts. very much appreciated.

Thanks sharesure - just for being there - and for a very succinct run down on what was not in the RNS! thanks also andysmith for the commentary which I pretty much agree with.

45% of household waste is packaging. Landfill sites are 90% full and unfit for any other use - ever! Governments are increasingly minded to legislate and charge penalties to creators and users of non-degradable packaging. When all this comes to bite ordinary mortals in the bottom, who will be ahead of the field? Who else is out there with such a coherent approach to a one-stop solution - which in addition to biodegradability a) uses less material (whose trims can be instantly recycled), b) uses less energy to manufacture/process, c) creates a better, longer-shelf-life product with less that 5% of the level of spoiled returns for heat-sealed products, and d) is announced today to be within reach of existing alternative pricing - while oil (and all its derivative products - among which plastic packaging) sits at $70 a barrel.

They've brought the horse to water. All they need now is a pair of bricks. Go on give 'em a big clap!

sd

Sharesure - thanks for the write-up.

anysmith - good analysis!

sd, could the two 4m trades be a rollover?
well said , andy. i think "inertia" is the correct word to use . seo's hiring of martin wagner will move things along as far as greenseal take up is concerned, as seo have used the old tactic of turning a poacher into a gamekeeper. terry robbins seems to be the man who is running the biotec show, and he is certainly the man with the knowledge to capitalise on its ip. he's not doing too bad , so far.

I cann't add much more to SS excellent summary - this was my first meeting of this kind so was learning the ropes - but here is a bit of a complimentary brain dump.

I made the comment to Ian over coffer that 5 machines was and would be seeen by many as disappointing - which he agreed with - but said that there were many negotiations going on - but he could not speculate over forecasts - but he was as frustrated as we were that orderes seemed to take longer than anticipated. The chairman also commented that he was relentless in the pressure that he put on Ian and his tean to turn actions into orders - but one got a very distinct impression that many were discussions were in progress at the moment.

I think the most significant thing that I recall was there was sufficient cash to sustain the company for at least another 18momths - even if they never got another order.

Also confirmed that they were in talks with all the other major retailers in UK- some of whom were trialling - and that this would not breach the agreement with ASDA - the impression being that others would be ready to roll as soon as the 12 month agreement with Asda expired.

Ian also confirmed that another 12 month agreement with ASDA following this one was not out of the qustion - if the commercials were right.

Also confirmed that some suppliers had some machines that served more than one retailer - which did not help - but also that there were many others that had "ASDA" only lines.

Agan confirmation that the agreement was only for Greenseal in UK.

My concern was that Ian only had 5 sales people - albeit very senior sales people working at very senior levels.

2 of the directors (Terry Robinson and one other) were unable to attend as they were in high level meetings with customers.
Also Howard White detained in Miami by a few breezes ? - I did wonder whether this might have been a convenient cover fort Howards aabsence - maybe I am starting to read things that are not there.

Ian again commented on how excited he was over the number of near commercially readiness that a lot of BIOTEC's products were and that there were 21 families of patents on starch related products. The inference was that the previous management were focused on different things and were not allowed to capitalise on what they had (because they did not have the necessary outlet to market - which SEO now provides - Ian was really quite excited about what they had bought and did admit that they had made a previous attempt to buy them.

Confirmed that Howard White was talking to some very large US organisationssssss

Ian Balchin looked knackered - a good sign I thought

Advise from lawyers over potential damages for BPRG was already in the accounts - as SS said - an irritant at this point - but no management time being diverted away from real business.

They are working "full throttle" with ASDA

Walmart was dropped into the conversation many times - although no indication of where they were in negotiations.

Philip talked about "encouraging talks by Howard with other US retailers"

All 4 now

Baza

Baza, SS many thanks for reporting your views of the EGM.

Andy, good analysis. I'm patient.......(ish)

pth

BIG thanks Sharesure and bhunt1910!!!

Enjoyed reading that.........all sounds very positive to me and the delay in rollout of Greenseal is pretty much what I expected anyway. I have to confess I got out a while ago but not permenantly.....just growing funds elsewhere for now. A work collegue and his wife still have a much larger investment in SEO than I ever could afford after learning about the company from me so comforting to learn the current state of play.

Watching closely as ever!

Sharesure/ Baza Hi,

Thanks for the info on the EGM, much appreciated :)

Cheers,
PM

Agree pth re very helpful input from baza, ss and andysmith. Many thanks.

Given that the EGM has been arranged for some time there is no particular reason why there should have been much newsworthy. In particular, the ASDA exclusivity period started end of July and we have only had a holiday month in between. We need to remember that ASDA of making their suppliers buy - cut their payments to share the proceeds anyway. What we don't know is when that will become effective.Mention is made of several hundred which I take to mean at least 300; I would expect the order volumes by quarter to be something like 10%, 20%, 30%, 40%; bound to be a relatively slow build-up. So that filled the news vacuum with an announcement of a supply agreement re Starpol; makes sense as the meeting was to confirm acquisition of Biotec anyway. The numbers look good but not that large compared with the cap. of around 200m.

So the question is whether the cap. is about right for now, too low or too high. The real plus from the feedback is that the good ship SEO is gathering pace and has an extremely bright future. As an investor for the medium term progress is OK and consistent with forward growth to a major company moving through the FTSE indices. More difficult to read as a trader and I am not surprised for teh short-termers to be making for the exit. aldwick's comment may be fairly typical: I have other places for short-term funds but reckon I should come back in during October when there has been time for the ASDA contract to be progressively taken up, events to occur in US and further progress with other products, Starpol in particular. Somewhat intrigued re disappearance of Evolution notes: may be because they are working on new one but may be that Tim Freeborn's analysis is not trusted by the management. Looks as though there has been some quite large volume buying today (or completed today). I suspect that we are in a phase where we are moving from the hot money from short-term traders looking for a quick buck towards more stable funds invested for the ride. Thus I don't think it is easy to read the action even for the rest of the week. I am poised to add to my cfd total but that will come with riding on success.

Eric

Hi All,

Re the two 4m trades at the close, I cannot see how so many are touting them as buys, when I watched the S.P virtually all day, and the mid was going between 21 and 21.25 constantly, and the bid and ask only changed a few times, quite often the mid and ask were 21.25 which would make them sells.

I have often been acused of claiming T trades are buys, when others claim they could be sells, I choose to follow the rule of price movement, but WT trades are even harder to pin down to a buy or sell, see the text below and you will see why, the broker might end up having to take all the stock, if they cannot find buyer(s), and then only the opening S.P tomorrow will show what those trades are. They could be one buy and one sell, hence no S.P movement, if they are buys expect a price hike from the start, if they are sells, a drop at the start, it's the only way to be certain with WT trades.

Also "It is a requirement of the regime that the broker dealer should attempt to improve on the terms of the original agreement", meaning the broker could have got a very good price for the stock being sold, thus making it look like a buy, when in fact it was a sell, or vice versa.


Report on the Worked Principal Agreement regime of the London Stock Exchange - PDF FILE

Definition of the Worked Principal Agreement regime
2.2 A transaction under the WPA regime takes place in the following manner. An
institutional investor, such as a pension fund wishing to buy or sell a large number of
shares, contacts a broker dealer. At this point, the parties enter into a provisional
agreement and agree the basic terms for the trade including limit price and size on which
improvement must be sought by the broker dealer. This agreement, between the broker
dealer acting as principal and the institutional investor, is known as a Worked Principal
Agreement. The terms of this agreement are reported to the Exchange but are not
published. After the parties have entered into the agreement, the broker dealer searches
for counter parties with whom to offset the trade. If no counter parties have been found,
the deal will still go ahead, with the broker dealer meeting the customers entire
requirement by adjusting his own holdings of the stock. It is a requirement of the regime
that the broker dealer should attempt to improve on the terms of the original agreement.
2.3 The parties must execute and report the trade by either (a) the end of the trading day, or
(b) when the broker dealer has found counter parties for 80% of the value of the trade,
whichever is the earlier. If they so wish, the parties can carry out the trade earlier than
either of these times. The regime is restricted to trades instigated by the customer that
are larger than eight times the Normal Market Size (8 x NMS) for the security concerned.

Cheers,
PM

December 17, 2004
100% Corn-Based Packaging Now In Use
Cargill Dow's innovative line of 100% corn-based bioplastic "NatureWorks Packaging" is now being used by a number of food companies to package fresh produce and salads. Dow Chemicals, a partner in the Cargill Dow company, has a questionable environmental and ethical track record. However, the Natureworks product is making breakthroughs for bioplastic into the food packaging marketplace.

Del Monte Fresh Produce is converting from PET containers to NatureWorks PLA packaging for fresh-cut pineapple, melons and fruit & vegetable medleys.

Newmans Own Organics will offer several organic salad varieties in two-piece, rigid tubs made from NatureWorks PLA.

Club Fresh is using NatureWorks PLA for cut melon, fruit mixes & diced vegetables.

Other companies are using Natureworks PLA to pack fresh fruit: Pac Organic is packaging organic cherries, and organic apples packed in NatureWorks PLA clamshells are now in a leading U.S. grocery chain.

New York Citys Columbia University is using NatureWorks packaging at its campus dining halls for salads, sandwiches and other to-go items.

You can purchase Natureworks PLA directly from the Brenmar Company. Packaging solutions using NatureWorks PLA are also available from Clear Lam Thermoforming, Intec Alliance, PPi/Berkley and Basket Ease.

http://www.metaefficient.com/metaefficient/archives/2004/12/

http://www.cargilldow.com/

http://www.cargilldow.com/corporate/nw_pack_home.asp

http://www.cargilldow.com/corporate/natureworks.asp

Consumer/ Packaging
Independent laboratory testing performed by the globally respected Hohenstein research Institute demonstrated that plaited fabric made from Cargill Dows NatureWorksLA and cotton performs better than plaited polyester/cotton fabric. The testing focused on sporting and active wear conditions, and the results concluded that wearers of fabric made from NatureWorksand cotton will experience improved physiological comfort versus the polyester/cotton faced fabric. Details from the testing can be found on Cargill Dows website: www.cdpoly.com. The PLA fiber appears to bridge the gap between natural fibers and synthetic. The fiber allows the creation of products with superior hand and touch, drape, comfort, moisture management, UV resistance and resilience. Cargill Dow is working closely with industry leaders and brand name customers to have products made from NatureWorks fibers available as early as this fall. Applications include apparel fabrics made from 100 percent PLA fiber as well as blends with wool, silk and cotton. Non-apparel applications include carpet tiles, fiberfill, industrial fabrics and home furnishings.

http://www.polymerplace.com/newsletters/February.htm

GPEC 2005 Paper Abstract #24:
Title: NatureWorks PLA Commercial Development of Biopolymers on a
World Scale
Author(s): Brian Glasbrenner, Cargill Dow LLC
Business Development Manager, films & bottles
NatureWorks PLA
15305 Minnetonka Blvd, Minnetonka, Minnesota 55345
www.cargilldow.com
www.natureworkspla.com
ABSTRACT
Polylactic acid (PLA) is a highly versatile aliphatic, compostable polymer derived from
100% annually renewable resources. Because annually renewable resources replace oil
as the feedstock, PLA requires 20-50% less fossil resources than comparable petroleum based
plastics. With PLA, carbon dioxide is removed from the atmosphere when
growing the feedstock crop and is returned to the earth when PLA is degraded. Since the
process recycles the earths carbon, PLA has the potential to reduce atmospheric CO2
levels. Disposal of PLA fits with existing systems including the additional option of
composting. Long-term, with the proper infrastructure, PLA products could be recycled
back to a monomer and into polymers.
The landmass necessary for feedstock production is minimal. Producing one billion
pounds of PLA requires less than 0.5% of the annual US corn crop. Since corn is an
inexpensive dextrose source, the current feedstock supply is more than adequate to meet
foreseeable demand. Compared to the escalating and volatile cost of petroleum-based
feedstocks, long-term PLA will eventually reap the benefits of a more stable and lower
priced feedstock.
In spite of PLAs excellent balance of properties and environmental benefits, traditionally
the commercial viability of PLA has been limited by high production costs (greater than
$2/lb). Until the last decade, PLA has enjoyed little success in replacing petroleum-based
plastics outside of biomedical applications like sutures. Though development of PLA is
at the early stages of commercialization versus more traditional, petroleum-based plastic,
expansion of commercial adoption for applications like PLA bottles has been rapidly
increasing as of late.

http://www.4spe.org/conf/0502gpec_prog.pdf

cheers baza. how did you find the whole experience?