Solar Ear looks to be targeting the need for low cost hearing aid solutions. If you read the article you find that there is a need for 35 million per year. Let’s assume that by using the V4 technology solar Ear is able to nail down a large portion of that market because hey have the most cost effective solution. Let’s assume they get 33% market share.

35 million * 33% = 11.55 million units

The plane was to get $5 per set of ear buds but let’s assume that ear person is only deaf in one ear thus the pay out per consumer will be $2.50. That results in revenue of 28.1 million per year.

If trading at 1 times earnings you would have a share price of 10 cents.

In addition consider the fact that those numbers are for the developing world. The US alone adds another 35 million people suffering hearing loss. Now add Europe and other countries to that figure. The market potential is huge.

It is also important to note that a contract like this will boost Sonomax to an entirely new valuation bracket. When RIM was a growing company they traded over 100 times earnings at one time. Established companies, with little to no growth, trade at about 15 times earnings in the tech sector.

If Sonomax nailed down a contract that generates that kind of revenue where will they trade? Fifteen times earnings would be $1.50. If the investment world sees the potential of this company perhaps Sonomax would trade at 50 time earnings or $5 per share.

Before the bashers start in, these numbers are speculative and we know the contract is not signed and so forth. That is why we call it speculation.

The point here was to illustrate the income potential of Sonomax!