DailyTrends.com Company of the Week: Sonic Innovations (SNCI)
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One of the most common adages used on Wall Street is to Buy Low and Sell High.
The people that have always told me that often got criticism from me, because it is easier said that done in real life.
For some reason though, I think this company sells something that is going to be used by a lot of people, especially in my age group. Sonic designs and makes hearing aids using its digital signal processing (DSP) technology.
A couple of their products include Natura and Altair hearing aids, which have a conventional fit, and the Conforma hearing aid, which fits entirely within the ear canal. Sonic Innovations also sells components of its DSP technology to other hearing aid companies on a limited basis.
Unfortunately, management had no comment at this time, so we must forgo our very popular and informative interview section.
In the past year, its earnings have gone down the crapper and Sonic had to lower estimates several times. Sales have dropped in Europe, changes have been made to government healthcare policies, and new products from competitors have come out.
This is just a phase in my opinion that may last another couple of quarters, but I do see hope. In March, they are going to release their ground breaking product and find ways of increasing distribution especially in Asia. Look at the five year chart of this company and see that it has been through adversity before.
Make sure you note that it has overcome it each and every time. I am probably going to buy some stock in this myself pretty soon.
Chris Lahiji will be available to take your questions until Thursday, January 27. Please use the form below to submit your questions.