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

Biotec is going to make Stanelco huge :)

Greenseal will make it massive :)

And all the other products will add up to make it a monster :)


Companies search for alternates as polymer prices rise

07/09/2005 - Biodegradable and recycled packaging may soon become viable alternatives for more food companies as the increasing price of plastics begins to be passed on by suppliers, KPMG states in a report.

Packaging is going to become more expensive, whether a company is using glass, paper or aluminum, KPMG quotes market experts as stating. However plastic prices are outpacing the rest. It is also the most-used form of packaging, prized because it is lighter, durable and easy to manufacture.

Prices for resins have been rising steadily, but have skyrocketed in recent months as the price of oil and natural gas has risen. Polyethylene resin, which comes from natural gas, and polypropylene, which is derived from crude oil, are used to make a variety of containers and films for the food and beverage industry.

Polyethylene, a plastic film used in food and other packaging, are up 25 per cent from levels in May and June. KPMG expects another 15 to 20 per cent increase in short- to mid-term polyethylene prices, according to data from the Plastics Exchange in Chicago.

In a published report KPMG partner Scott Flynn says the price increases are just beginning to trickle down to the consumer products industry, including food processors. Packaging accounts for about 10 per cent of a product's cost, Flynn stated.

Depending on their contracts, plastics packaging manufacturers have so far borne the brunt of the increased costs rather than attempting to pass them on to their customers. In the short term they have been anxious to keep their business relationships with their large consumers and are instead leveraging productivity increases to help soften the blow, Flynn stated.

"But plastics producers can absorb increased costs for only so long," he stated. "When food commodity prices rose over the past several years, ingredient suppliers eventually had to raise their prices for food makers."

Under such conditions, resin alternatives, including starch-based packaging, looks increasingly attractive to food processors. Polyactic acid (PLA), a biodegradable extract of corn, can be used for food and consumer products packaging. For example Cargill Dow Polymers uses PLA to make packaging under its NatureWorks brand name.

Another alternative is starch. California.-based Earthshell Corp. holds patents to make biodegradable packages from starch. The company licenses its biodegradable packaging technology to packaging manufacturers. The company primarily use starch from potatoes to make packages, but also uses corn and wheat.

However KPMG quotes industry observers as stating that market growth has been inhibited by several factors, including capacity issues, a long-established supply network for petroleum-based plastics and institutional resistance to change.

Starch-based alternatives have their drawbacks. They requires lots of fuel and petroleum-based fertilizer to grow the crops. Food industries need to consider using recycled packaging instead.

The move to biodegradable or more use of recycled materials might occur if the high prices for petrol and resins is maintained in the long term, as seems likely to occur.

Prices for crude oil recently topped a record $70 a barrel, while natural gas hovers around $10 per million British thermal units (BTU). The Center for Global Energy Studies expects oil prices to remain above $50 a barrel throughout 2006. Historical prices for natural gas usually were around the $1.25 to $2 per million BTU, according to the Plastics Exchange in Chicago.

Polymer prices, which eased slightly in the second quarter, seem set to return to, and possibly exceed, the record highs experienced towards the end of 2004, according to industry experts.

Hi All,

One day I will be telling my grandchildren how I 'got in at the start of the starch plastic revolution', and how it 'made me a multi-millionaire' :)

I hope you will be in a similar situation too :)

Cheers,
PM

By the time I've read all your posts, Paul, I'll be able to tell mine as well!

Seroxat - bit of a dodgy pimple on the right cheek - brought on by aberrant reporting from elrico the typographical wonder on lmemgin ivnesotr (love those Russians!). If it rises back up through the interim peaks (known as cheek peaks, not pink cheeks which go the other way) then you may pat yourself on the back and claim expert skill. If we continue south of the 200dma, then you should go back and re-edit your post for posterity!

I'm still in and holding for the mid to long term.

sd

SD Hi,

PMSL :))))

Cheers,
PM

Team
I will be emailing SEO to find out who they are sending to the Birmingham Packaging show next week. I have received my ticket
Not worried

http://packaginginnovationshow.com/

Worrier Hi,

I reckon Terry and Martin, plus a few other sales peolpe ....

Cheers,
PM

Looks like the frogs not croaked!

Distribution contract with Elwood Packageing announced this morning for Frogpack,
another part of the jigsaw.
cyril

AYE !!!!

Excellent news :)

Stanelco PLC
22 September 2005

22nd September 2005

Stanelco plc ('Stanelco' or the 'Company')

Stanelco signs exclusive US manufacturing Agreement for FrogPack with Elwood Packaging Inc

Stanelco, the RF (radio frequency) applications group, is pleased to announce
that it has entered into an exclusive manufacturing agreement with Elwood
Packaging Inc. ('Elwood') covering the exclusive manufacture of Stanelco's
FrogPack packaging in the United States of America.

The duration of the exclusive period, initially 18 months, is dependent upon
Elwood achieving and maintaining certain levels of sales.

Elwood Packaging was founded in 1947 and is a leading supplier of packaging
solutions in the US. It produces in excess of 40 million packaging units a
year. Amongst its clients are Motorola and Atari as well as many of the leading
direct mail consultancy and advertising agencies in the US.

Howard White, Group Managing Director and president of US operations commented,
'We are delighted to select Elwood to manufacture FrogPack packaging under
licence. Elwood have already identified mass market opportunities for FrogPack
in the US and we look forward to assisting them to realise the full market
potential of this innovative product.'

Dennis Splitgerber, sales manager, Elwood Packaging, Inc said 'Combined with
Stanelco's solid product line, we will produce the ultimate protection in
packaging products.'

This is excellent news with another deal struck although let's get it into perspective that this is only a manufacturing agreement so not exactly highlighting an financial figures to the deal but all good!

IMHO

Kong

Is Frogpack made out of Biotecs raw material ?, if so would this not add sales to Biotec ?

PM - you lying again..you a multi-millionaire!! it should be multi-billionaire ))..


"One day I will be telling my grandchildren how I 'got in at the start of the starch plastic revolution', and how it 'made me a multi-millionaire' :)

I hope you will be in a similar situation too :)

Cheers,
PM
-----------

goodluck PM1..

Brandname Hi,

Nope sorry :(

But EVO suggested a royalty of 3p per Frogpack (in their note of 28th Feb 2005)

Cheers,
PM

shman Hi,

Thanks, you too :)

Cheers,
PM

LOL !!!!

====================================================
paulmasterson1 - 20 Sep 2005 21:49 - 9695 of 9800
Andy Hi,

Your going to miss all those near term RNS's .... one could be Walmart at the time ot the show in October ....

Cheers,
PM
===========================================================

I wonder if we will get the usual climb this morning on news followed by the usual pull back this afternoon back to break even !!

Baza

Not sure that I understand this bit

"The duration of the exclusive period, initially 18 months, is dependent upon
Elwood achieving and maintaining certain levels of sales"

Does that mean that Elwood - as well as being a manufacturer of Frogpack - are also responsible for all sales of Frogpac??

Baza

Baza Hi,

Looks that way to me, although Stanelcosaid they will give them sales support, i.e. advertising and demonstrations to possible big users of Frogpack.

For them to be given such a long (18 months !) exclusivity, I think they already have some big orders(Motorola and Atari are mentioned, strange if they are not actually buying !) that make it worth giving them that deal.

Could be worth several hundred thousand in year one, maybe into the million(s) in year two, as I said before on many an occaision, this could well pay Stanelco's running costs :)

Cheers,
PM

Baza
It means that if they make good sales they will extend beyond the initial period of 18 months. If not, they will cancel the exclusivity and look elsewhere for a manufacturer who can achieve better volume. SEO don't manufacture or market any ofhteir products, they justearn a royalty on the IP which they have developed and patented. The enormous value to us of this model is the very limited capital they need to launch untested products onto the market - they use someone else's. So the downside is limited, but when it works revenues flow very quickly to the bottom line.

Frogppack is a welcome visitor to SEO's garden of delights, but I'm not sure if he has the back legs to jump the 20dma which seems to be acting as a fairly consistent resistance at present. But he is probably wise enough not to try to jump in and out of the market on this one, happy to sit on his lily leaf and watch the waters slowly rise.

sd

Hi All,

I think the price is still being affected by the big seller that took the price down to 15.75p, but I think the bulls will see this deal as red, and we will push back above 20p before the close tomorrow.

KBC, EVO or Lemming Investor will hopefully update us with some numbers and value later, after all Lemming Investor only spoke to Haoward last Friday ....

Cheers,
PM