ING Groep N.V. is a global financial institution of Dutch origin which is active in the fields of banking, insurance and asset management in some 60 countries. For the 9 months ended 9/30/00, total revenues rose 25% to EUR36.95B. Net income applicable to Common rose 26% to EUR3.03B. Results reflect increased life insurance premium income due to stronger demand, and a reduced provision for loan losses relating to the banking operations.

January 7, 2001

ING Group (ING) offers a comprehensive range of life and non-life insurance, commercial and investment banking, asset management and related products and services in 60 countries worldwide. The recent passage of last year’s financial service reform legislation, which allows companies to combine insurance with banking, has brought new life to the multi-line sector. This change positions ING to thrive under this new operating environment. Currently, the company has 957.8 million shares outstanding with 1.5 billion authorized, not enough for a 2:1 split. However, the present run to all time new highs could prompt management to increase their authorized shares for a future split. In addition, we feel that a strong breakout, as confirmed by ING’s chart, makes the company an even more appealing play. From its lows in March, the stock has had an impressive run, gaining 75%. A series of higher highs and higher lows have created a strong uptrend on the chart, which generally attracts a lot of momentum traders. With this in mind, we’ll look for an advance above the all time high of $83.94 to signal additional lower risk entry points. Secondary resistance should come in at the $85 and $90 levels. Look to confirm entries when ING ascends through resistance on volume of 140,000 shares or greater. However, should the stock test support prior to advancing, we’ll look for an initial base to come at the $80 mark, bolstered by 10-dma of $79.79. Stronger support should come just lower at the 15-dma of $77.42. We’ll look for the last line of defense to come at $76, bolstered by the 20-dma of $75.81. Set stops just below this level at $75.81 to protect our backside. Sharp reversals from either of these levels will provide us with low-priced entries, when good mid-day volume of 70,000 can confirm the reversal.

Picked on January 7th @ $82.06
Change since picked 0.00
Stop Loss @ $75.81

January 16, 2000

ING has done very well recently, but it looks like many stocks in the insurance sector may have encountered a near-term top. Today’s quick drop at the open, which stopped us out at $77.13, is a good indication that ING may be in for further weakness.

Picked on January 7th @ $82.06
Profit/Loss = -4.81 (-6%) (Stopped Tuesday @ $77.13)
Best Profit = -0.56 (-1%)

January 14, 2001

To meet the savings and retirement needs of the baby boomer demographic group, ING has developed a strong mix of services geared toward this segment of the population. Specifically, ING’s annuity business has evolved into one of the fastest growing financial segments of the company. Closing out the week with more consolidation, ING shares carried out a quick reversal of the short-term up trend Friday by falling 2.06 points to $78.94. The NYSE Financial Index (NFX) fell lower by 10.09 points or 1.59%, which likely played a key role in ING’s weak performance on the day. Should further weakness send shares lower, it’s important to mention that the stock is now trading less than one point away from our stop at $78. Today’s low of $78.50 and the 20-dma of $78.12 still rest ahead of our stop, so we’ll look for final support to come at these two levels. On the upside, previous support at the $80 mark will now become our initial resistance point. Higher up, the 10-dma of $81.09 will strengthen resistance at Thursday’s high of $81. However, we’ll look for the toughest challenge to come at the all time high of $83.94. If good volume of 140,000 shares can adjoin an advance through either of these resistance points, then look for potential buy points. Strength in the NFX will also help to confirm entries.

Picked on January 7th @ $82.06
Change since picked –3.13
Stop Loss @ $78.00