Cut Your Risk With These Tech Stocks

Article Excerpt

Technology companies operate in a highly competitive and cyclical industry, so they must continue to invest heavily in research and marketing. We aim to cut tech stock risk by focusing on companies with distinct competitive advantages, such as proprietary technology, broad geographic reach and a wide client base. These advantages should help these three techs weather the inevitable downturns, and thrive when conditions improve. GENNUM CORP. $9.05 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.6 million; Market cap: $322.2 million; SI Rating: Above average) makes equipment that lets broadcasters store, manipulate and transport video signals without losing picture quality. This business accounts for 75% of Gennum’s total revenue. The company also makes chips for computer networks. Gennum recently completed a major realignment of its operations. It sold its slow-growing hearing aid and headset businesses, as well as part of its video chip operations. The company used the proceeds of around $25 million U.S. to finance its $25.3 million…

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