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

Morning all.

Good bit of argument, Stockdog; it doesn't hurt to play safe.

I thought it was unhelpful to say the least that SEO management did not publish any indication of the size of the placing in today's RNS.

However, it seems that the co's financial future is looking safer and rumours of its imminent demise are greatly exaggerated. We hope.

A thought about dilution. If SEO is really raising a full 15 mil as per recent speculation, they'd need to issue 1,875 million new shares, to add to the approx 1,000 million currently in issue. That's 2,875 million total.

If T&G's prediction of a profit of 1.3 million for 2007 comes true, and the SP sticks at 1p, you'd have a mkt cap of 28.75 mil and a PE of 22.1.

Or at the placing price of 0.8p per share, a PE of 17.7.

I'm inclined to wonder if there will be a sell-off and further price fall after the fundraising. I suspect much will depend upon
a.) the size of the fundraising and resultant dilution: their impact upon a fickle market;
b.) the size of the contracts being negotiated;
c.) whether further contracts are likely to follow within a reasonable timeframe or if we return to the uphill struggle that has characterised the past several months.

FWIW - Along with some others on this thread, I'm beginning to think that the management could also do with an infusion of fresh blood.

All IMO, just thinking out loud. Good luck to all who are holding.

Steady as she goes chaps. 2/3 weeks will see a resurgent Stanelco..............or a glum looking Official Receiver. I fancy the former and unless there is an iceberg in the way, we will sail into a beautiful sunrise.
kim

Could be a Greensealed iceberg lettuce of course.
kim

Soul Traders - a post in a thousand, it actually offers some constructive analysis of the facts. To extend your maths a little . .

Say there were further contracts and the business took off a little as we'd all hoped, could it grow EPS by 30% p.a. for the next couple of years to qualify it as a growth stock on PEG grounds? It could easily grow by 100% then 50% pa with profits going to 3.4m and then 5.1m and thereafter by 35%, 25% and 15% p.a over the next 3 years to a profit of 9.9m for a 5 year PE of 2.9.

If at that time a proven growth company might be expected to be fair value on a PE of say 15. Then the SP should rise by a factor of 15/2.9 = 5 tims todays price which over 5 years is not at all bad.

Dreeeeaaaammmmm, dreeeeaaaammmm, dreeaamm, tra la la . . .

sd

It's back to yesterdays discussion. Only 248,906,128 shares available to be issued. These can be used NOW in a Placing but at .8p that produces less than 2m.

They must have more in mind which, if it involves more shares, rights issues, further placing etc will invariably mean obtaining Shareholder approval at an EGM at the end of the month at the earliest.

Facing us Shareholders. This cannot be a thrilling prospect for the Board.
But it gives us an opportunity to blow off steam.

What about a proposal for a change in the Board? Any ideas?

Been a while gents.

I'll ditto SD's views-Also picked up the 15 Mill figure from rumours. I think we'll see slightly positive trading when its announced but maybe only around 1.5p-2p level. I think we'll be seeing some changes in the near future at SEO.

Tony,

Board changes are def on the cards I would have thought-maybe some of the big guns will take a chop.......

SD - not a bad piece of maths on your part, too, but I think I'd prefer to invest in SOLA which is shaping up for a three-bagger within a couple of years and maybe a small punt on AAU or RET which (to my peculiar way of thinking) offer all of the thrills of SEO and less of the downside.

Am still considering a punt on SEO, but everything has to fit and I need to find enough cash down the back of the sofa to pay for a stake.

I still think SEO would need to change the management in order to be able to persuade me that they can produce sustained growth. Their failure to mention the size of the fundraising in today's RNS just underlines to me that they don't have much clue about communicating with shareholders, in addition to all their other fumbles, and that makes me nervous about holding the stock.

Tonyrelaxes if I had the time I would certainly be doing a lot more to remove most of the SEO board starting with Warner. What they need to do now is come clean on all developments and progress, Greenseal, Starpol, ciggy filters etc. What we need to know is what is in the contracts they have been harping on about for the last 2 months. If it is anything other than substantial I think they (and us) are all f'---ed anyway.

We need to know the truth re. ASDA & Greenseal and Starpol, who is taking it up and when.

I've learnt a lesson from SEO and my new policy is not to go overweight in my portfolio on any one share unless it is a) already profitable and b) growing fast enough.

Not sure about SOLA but like/am in RCG.

As to board changes, I am increassingly suspicious of the emotional values Howard White must bring to management - he is major beneficiary of Age of Reason holding, takes no salary and runs US. Sounds like the whole IP venture could have been his initiative way back (complete guess) and, quite likely he acts like a force of nature (no criticism implied) and confuses his financial interests with good management (criticism implied).

Needs a really good professional CEO and FD to plan 3-5 years a head and WATCH THE CASHFLOW which is the most common cause of new fast growing businesses failing.

sd

SD, I agree your last line in particular - it could be that the sound of heads rolling does more to cheer the SP than anything else.

It's almost worth buying a few shares on certificate in order to be able to attend the EGM/AGM and just watch what happens. I'll make sure I turn up in a suit (of Kevlar riot gear!).

SEO was a hype-up share especially by Shares magazine initially when it was 15p. Nowadays I don't quite trust the articles in Shares magazine as I been caught by their advice several times!

The shares magazine article today on Stanelco is the worst I have seen on a company for many a year and has upset me greatly.

In my opinion they seem to have an agenda against the company!

So is that it...
are the dreams of a 1 party within 3 years gone?

hlyeo98
If all had gone to plan then 15p would have been cheap, at a 1p it could go either way for what its worth I think it, we will survive to see better days from SEO onward and upwards, Ive said that some where before?

hlye I agree SHARES MAG IS THE BIGGEST PILE OF CRAP YOU'RE EVER LIKELY TO READ, almost as good as read as TOM BULLFORD'S RED HOT PENNY SHARES!

Agreed about Board changes due and what could be needed. Also I get the impression a really firm Sales/Negotiating Director would not go amiss.

The Company has great ideas, patents, is innovative in these fields but woefully lacking in resentation and delivery.

Howard White's background was corporate recovery before he got involved with SEO. SEO needs those talents more now than when he arrived!

I agree that due to his connected shareholdings he probably is considered more like the boss of a one man band than just for the duties he purports to carry out.

But what we need is a highly skilled and motivated TEAM with individual abilities covering all diciplines. And more prodding from shareholders!

greekman, confidant, that was pretty much my point. why not wait until everything has been completed and then release an rns? truly shambolic and very typical of seo. when you consider the ip this company has and the huge amounts it has raised from previous placings, the mess it has created is astounding.
sd, if we're talking about lessons learnt, then for my part i consider seo as a great lesson in not falling in love with a share, that you need to be cold and cynical.

it might be that they issued the statement following the slagging by Shares Mag -- not seen the report but apparently says co going bust -- this could be enough to spur the comment

I suspect at this moment, SEO are damned if they do and damned if they dont , issue an RNS.

They are currently in a no win situation until they have some positive news to tell.

I want to see details of funding and details of contracts - otherwise I dont want to hear from them