Well I'm still looking for recovery stocks to dip my toe into and my current list is
- Tadpole Technology - still doing well and price holding considering a lack of news.
- Global Coal Management - up since I first posted on it a couple of weeks ago, although it dipped back a little today. Not a problem, nothing rises in straight lines.
- Ramco Energy - nothing on it as yet, but the fact that they are in discussions regarding getting into Iraq is positive, so this one might start moving once the legislation is all sorted out regarding foreign oil companies being allowed to operate blocks out there.
- Caterpillar Inc - I've not done anything with this one yet, but it's still my intention to get it into my ISA at some point even if just for the dividend payments.
A new one I want to add to this list today is The Stanelco Group. I held shares in this company a couple of years back and they didn't perform well, but unlike my Tad holding which I forgot to let go of, I sold them at a loss but yet again kept them on my watch list. Asda were running trials on one of their products when I held them before but nothing much seemed to come of that at the time.
Today the price hit 1.08 : 1.11. Not the lowest it's been in the last 3 months but just o.01 off of it. The prelim results are due out 21st March 2007 and according to an RNS on the 5th March they have had an offer for a part of the business with other suitors looking at it. The market expects the losses to be in the region of 5.7million, but this is probably already priced into current shareprice since it has been made public.
I might buy a few with a view to adding to them if the price goes up or down. Never go too heavily into a recovery stock.....it might not recover after all. I've added some info from various sites below to give you a start for your own research.
Extract of news from 5th March
"India's Arrow Coated Products, a mid-sized packaging firm, has made a bid to buy UK-based Stanelco PLC's unit Adept Polymers, a maker of biodegradable plastics, the Economic Times reported citing sources close to the deal."
"Stanelco is selling Adept to focus on radio frequency welding technology and that it has received bids from packaging companies in France, the US and the UK."
http://finance.google.com/finance?q=LON%3ASEO
Stanelco Plc is an investment holding company. Its wholly owned trading subsidiary, Stanelco RF Technologies Limited is a developer, manufacturer and supplier of high frequency thermal processing equipment and processes, applications for which include the GreenSeal process of sealing plastic and biodegradable containers, using radio frequency (RF). Its other subsidiary undertakings include, InGel Technologies Limited, which is a research and development company; Adept Polymers Limited a company that specializes in the formulation and manufacture of biodegradable plastic based on polyvinyl alcohol and starch, and Aquasol Limited, which specializes in designing packaging solutions and has specific expertise in water-soluble packaging. In September 2005, the Company acquired Biotec Holding GmbH Group and disposed 50% to SPhere. Biotec is one of the exponents of starch technology and specialize in formulations for packaging, pharmaceutical and edible applications.
http://www.stanelco.co.uk/index.htm
The info from below relates to an exclusive deal started in March 2005, whcih was then extended by a year. It doesn't say whether that was extended March to March in which case that would be about to expire or if it continued from August, the time of the RNS.
RNS Number:5121H Stanelco PLC 10 August 2006
10th August 2006
Stanelco plc Re agreement with ASDA
Stanelco plc ("Stanelco") is pleased to announce an update regarding its GreenSeal technology following its initial 12 month exclusivity period with ASDA. Stanelco will continue to work with ASDA as they support our GreenSeal technology as a way to achieve part of ASDA'S greater business objective of meeting their obligations around sustainability.
The original terms of the agreement between ASDA and Stanelco, as announced on 24 March 2005, for Stanelco's GREENSEAL technology have been extended for another 12 months, other than the exclusivity arrangement with ASDA which has been waived. This will allow Stanelco to offer the GREENSEAL technology to non-exclusive ASDA suppliers, as well as ASDA.
Martin Wagner, CEO of Stanelco said:
"This is an important development with ASDA and shows the strength of our relationship. Whilst all the major components of our agreement remain ASDA have agreed to relax the exclusivity of usage for non ASDA suppliers. This means that suppliers to ASDA who also pack for other retailers can now be approached.
A significant hurdle for us has been identifying packing lines that were exclusively for ASDA usage. By removing this obstacle we can now effectively offer our GreenSeal technology to any user. This negotiation with ASDA has been over a protracted period of time and we are grateful for their unwavering support."
There is nothing jumping out of a google search regarding greenseal since 2005. Time for an update on that I guess.
FrogPack (A Stanelco product) http://www.frogpack.com/
A rugged, high-impact resistant packaging application has been developed for suppliers wanting to minimise breakage and waste during shipping and transporting.Stanelco, the UK-based company behind the innovation, believes that the concept will take off because it taps into a key concern of both suppliers and retailers – the protection of goods throughout the supply chain. In addition the packaging uses biodegradable material and uses less energy in the actual production process.
The company is in the process of trying to break into the lucrative US market.
Designed to withstand substantial punishment, Stanelco's FrogPack features a unique energy-absorbing design, combined with Cradlewrap, a biodegradable air-cushioning wrapping material that can be used within the containers.
This, says Stanelco, provides remarkably secure protection for goods that require shipping. The company claims that tests undertaken to challenge FrogPack's sturdiness have confirmed that highly fragile items such as glass champagne bottles dropped from a helicopter from as high as 200 feet in the air suffered no damage or signs of their fall.
"FrogPack can take a hard punch,” said David Edwards, the inventor of FrogPack. “Retailers will be impressed when they see how much punishment FrogPack absorbs.
“The packaging is a superior alternative for protecting goods during shipping. "FrogPack's capability to protect, combined with its potential for reducing costs in packaging and shipping, is unlike anything currently in use in North America."
FrogPack utilises a unique technology called shock-absorbing arcuate panel technology (SAAP) for its added strength and protective qualifies. The technology, designed by Aquasol, a subsidiary of Stanelco, is already in use in the United Kingdom by a packager of lighting supplies and a packager of electronic components.
In addition to its ability to withstand high-impact punishment, FrogPack possesses environmentally attractive features that will be attractive to North American retailers. FrogPack can be either recycled or composted.
FrogPack's high-impact design means that the packaging, which can be manufactured on a customized basis, can be produced in smaller sizes, requiring less material and less energy in the actual production process.
"Eventually, we believe that FrogPack will replace padded envelopes and boxes that utilise polystyrene inserts and plastic air bubbles," said Edwards.
A client for frogpack http://www.merlindirect.com/product-list.cfm?catId=18&depId=16