Read this and grow up all your childish de-rampers!! Worse than a kiddies playground this thread.
Stanelco finished the week with a bloody nose, despite excellent progress in 2005. There can be no doubting that 2006 will be a key year for the company The shares closed down 7.4% to 15.5p after announcing it received a 'substantial offer' of funding in relation to a proposed production and R&D facility in Wales, allowing it to invest about £3m in the facility.
It added that it made significant progress in the development and commercialisation of its GREENSEAL technology.
It is working with ASDA and four of its key suppliers to fulfil the initial stage of the ASDA contract, it said, adding that current potential placements are expected to lead to orders in excess of 50 conversions with one supplier to ASDA. Another supplier is indicating a requirement for another 30 machines.
Although the shares are 114% higher since our inaugural feature, We still believe Stanelco will be a £2 billion company in five years or so, if Wal-mart takes on where ASDA leaves off. Then they will all want to take up Greenseal - 50,000 of them (m/cs - not clients) However the £144m current cap is up with events and IMO needs at least £5m/pa profits to sustain it. The whole ASDA 200 m/c contract still remains tantalisingly indecisive, (though this weeks news suggests there is some movement in the right direction) and would not produce the £5m annual profit on its own. Biotec is potentially just as big but is a year further away.
This is a share with such a good story ahead of facts that when it becomes cash positive, it could well remain overbought on an astronomical PE say 80, and therefore will always carry a risk of sharp correction, as it did recently to 12p.
Stanelco also announced that it has entered into a landmark cooperation deal with Perseco, a company specialising in cost effective, innovative packaging solutions to the food service and beverage industries. The partnership will focus on utilising Stanelco`s packaging technologies. Amongst Perseco`s clients are some of the world's leading fast food brands in the US.
Howard White, Group Managing Director of Stanelco, commented:
'We are delighted that Perseco have acknowledged that Stanelco has some of the most advanced packaging technology in the world. This includes both our range of biodegradable food packaging materials from Biotec as well as the technologies within the Company's other subsidiaries. With this cooperation Perseco will partner Stanelco with a number of their global resource suppliers both to
present packaging solutions and to achieve sustainability in materials
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