COVID-19 slows move to unlock value

Article Excerpt

The stock market turmoil caused by COVID-19 will likely prompt many companies to postpone their upcoming spinoffs or strategic sales. Even so, when business conditions improve, we expect Vonage and Archer Daniels to follow through with their own plans to add investor value. VONAGE HOLDINGS CORP. $7.76 is okay to hold for aggressive investors. The stock (New York symbol VG; Manufacturing & Industry sector; Shares outstanding: 242.8 million; Market cap: $1.9 billion; No dividend paid; Takeover Target Rating: Highest; www.vonage.com) gives you a stake in this provider of cloud communication services to businesses and consumers, primarily in the U.S. Vonage specializes in Voice-over-Internet-Protocol (VoIP) technology, which uses the Internet instead of traditional phone networks to transmit phone calls and other data. The company is now conducting a strategic review of its consumer segment, which could include the sale of the division or a spinoff to investors. In 2019, the consumer division supplied 32% of Vonage’s revenue, and 45% of its earnings. The review has been prompted by…

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