New cable technology has big potential

Article Excerpt

GENNUM CORP. $3.65 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.4 million; Market cap: $129.2 million; Price-to-sales ratio: 0.8; SI Rating: Above Average) continues to spend a high 25% of its revenue on research. This hurts its earnings, but often leads to breakthroughs that help Gennum keep its lead in the niche video-storage and transmission market. For example, Gennum has developed a new way to transmit high-definition video signals over standard coaxial television cable. Most closed-circuit video surveillance systems use these cables, so Gennum’s technology will let businesses improve the quality of these signals without buying special high-definition video cables. Gennum is a buy. buy…