Sonic Innovations SNCI

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Bought a little SNCI today. It’s a company makes hearing aids. I read it from Kiplinger’s Personal Finance August Issue in the weekend. Did a little research including reading its annual report. This is my speculative play, I put my bet on it because I think some of the positives include:

ion hearing aid pic

1) The company sold its unprofitable unit (Tympany) recently. Meanwhile, it’s trying to expand distribution and retail channel.

2) US baby boomers (people born from 1946 to 1964) are near retiring age. As we know, older people are big customers of hearing aids.

3) There are lots of consolidations in this industry lately.

I don’t take this is a China play, although on my flight from PVG to ORD in the May, I met an engineer who works for an OEM supplier for hearing aids (in Suzhou). It seems hearing aids market is at infancy stage in China.

I also sold the NINE (Ninetowns) today: took my second loss this year, the first is XFML.

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