I would like to comment on several aspects of your which warrant further discussion.

Firstly, talking buyout with a tech company at any stage is not ridiculous. They can and do happen at anytime. Will Sonomax get bought out this year or next? I am guessing no but I would not bet on it.

Sonomax had several problems with brining s new product to market. I would suggest that the single largest concern for potential suitors, OEMs, and retailers was quite simply a lack of proven sales (or consumer adoption) and a lack of adequate product testing.

Sonomax has fixed those problems by taking their product to retail on their own. With the Sonomax brand on store shelves Sonomax can walk into negotiations with proven sales records and proven returns records. This gives all potential clients critical information which they need to make their own assessment of the technology.

The retailing of the Sonomax brand was a critical component in achieving the end goal for the company which is to become a licensing company. This is where I find your post was a bit misleading. While Sonomax will wait for no one they have no intentions on becoming a global retailer. Their intent is to have the competition licences the Sonomax technology and they can do the selling. Why would Sonomax want to compete when they can simply have the competition sell for them? Clearly, licensing deals are the most risk free and lucrative dealings in the long run for Sonomax.

Keep in mind that I said that Sonomax will wait for no one. This is where the retailing of the Sonomax Eers comes to play. If you want a projection of sales I would suggest that you contact Sonomax as opposed to quoting Arabian Prince. While Arabian Prince is a very successful individual he is not the man running Sonomax. The 300,000 unit figure is very possible by years end but let’s not put the cart before the horse. Let’s see some deals inked and let’s see the sales figures from last year.

Also, I would like to point out that your 10% assumption is not very appropriate. For OEM deals Sonomax has indicated that they will take about $5 per ear for each product sold. That is far less then 10% per unit. On the other hand, there are retail sales. For retail sales yoru assumption of 10% is grossly underestimated. Sonomax will not be working on a 10% profit margin when they are risking the manufacturing and the returns of products. The returns are likely to be on the order of 25%-50% with the online sales being the most profitable sales for Sonomax.

As far as shareholders are concerned everyone has a price that they are willing ot accept for their shares. A statement such as “3860 shareholders could help the company by not selling any of our holdings under 20 cents” is a bit fool hearted. With ones own money on the line it is both logical and expected that investors take some money off the table as a stock price increases. The single most logical point thing to do is take 50% off the table on a double in share price such that your risk capitol is reduced to zero and then you can let the remainder of your position ride risk and worry free.

To summarize:

1. Buyouts could come at anytime.
2. Sonomax intends to be a licensing company.
3. Sonomax is likely to halt its own retail efforts in the future to focus on R&D as well as inking more licensing deals.
4. OEM profits are pegged at $5 per ear (a range from 3-10 is more likely)
5. Retail profits are undoubtedly greater then 10% of retail price.
6. Arabian Prince is not the best source for sales projections.
7. Prudent investing is an investors best option

Sonomax is in my opinion poised to be one of Canada’s next great tech stocks. This will not likely happen over night as launching new retail products takes significant time and money. The research and development of new products is also a time consuming endeavour. That is not to say that things can not happen quickly and if they do we will all be rewarded for out patience with this stock.

In my opinion, this stock is great buy at these prices. I consider it to be unreasonable cheap especially considering the block buster year of deals for 2011 which have gone unrecognized by the market. As with all investments I remain forever objective and considerate of all opinions and arguments both good and bad. At this time I consider the pro’s to greatly outweigh the con’s for this investment.