Canadian stock picks: Gennum earnings decline in latest quarter

Gennum Corp., Toronto symbol GND, makes equipment for TV broadcasters that stores, manipulates and transfers video signals. It also makes chips that make computer networks work more quickly. Gennum is one of the Canadian stock picks we analyze in The Successful Investor. On April 6, 2011, Gennum acquired Nanotech Semiconductor Limited for $35.9 million. Based in Bristol, U.K., Nanotech designs chips for high-speed communication networks. In its 2011 second quarter, which ended May 31, 2011, Gennum earned $3.6 million, or $0.10 per share, down 12.5% from $4.1 million, or $0.12 per share, a year earlier (all amounts except share price in U.S. dollars). The drop was due mainly to the costs of the Nanotech acquisition. However, the Canadian stock pick’s sales rose 8.7%, to $34.4 million from $31.7 million. That’s entirely due to the Nanotech purchase, which added $2.2 million to Gennum’s sales. Gennum is a dividend paying stock. Its annual dividend rate of $0.14 a share (Canadian) yields 2.0%. The company spends a high 31% of its sales on research. You can get our latest analysis, including our clear buy/sell/hold advice, on Gemnnum and dozens of other stocks you may be considering buying in The Successful Investor. What’s more, you can get one month free when you subscribe today. Click here to learn how.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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