The Sonomax share price is not simply a function of present news but rather a complex calculation of history, present news, expectations, promotion, pending products, market conditions etc.

There are a variety of reasons that the SP for Sonomax is so low in the face of apparently excellent news. I will touch on a few.

The first reason is history. Sonomax has a long history of over promising and under delivering. They have been effective in stopping this behaviour in my opinion. Never the less there are many disgruntled long term shareholders who hold the attitude “yeah right, heard it all before” and those investors are likely selling on the spikes. Furthermore, in December there was a massive amount of tax loss selling in the 3-4 cent range. Coincidentally there was lots of buying because of high expectations for a quick profit from the CES show. Sure enough the CES show was a hit and the stock climbed to a peak of 6 cent in the intraday trading as I recall. At that time investors began selling to take profit and this put the stock back to the 4 cent area and there has been continued selling pressure ever since.

Combine a disgruntled base of shareholders with a slumping market and you have a very difficult hill to climb.

So what will it take to move this stock? Well, IMHO letters of intent, OEM deals, and retail deals are no longer going to win over investors. There was an OEM deal signed about a year ago which has thus far not yielded any results. Letters of intent are nothing more then intent to do a future deal. This is not a guarantee. What Sonomax needs to move this share price IMO are sales numbers. They need to show a good quarter over quarter growth in retail sales which investors will reward the stock with by starting to trade it on PE ratios. In addition Sonomax will need to show that 1 or more OEM’s are starting production and sales. This may excite the market.

In my opinion this is a stock worth owning at these prices. Institutional support has come in very recently at 5 cents in a PP after about a year of doing their own due diligence. This is a massive vote of confidence from professional investors and analysts. You can buy not for 3-4 cents and hold on for the ride. It could take 6 months or 6 years to get a solid return provided Sonomax continues its current path.