|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
JULY 25, 2005
Looking A-O.K. At ING  The Netherlands' ING Group (ING
) (ING), a provider of banking, insurance, and asset management to 50 million clients -- individuals, companies and institutions -- in over 50 countries, has been making inroads in America, mainly in direct and Internet banking. For U.S. rivals, ING's global reach -- and 1,600 branches -- make it an attractive target, says Don Schreiber, CEO of investment adviser Wealth Builders, which has bought shares. He calls ING an "undervalued gem -- as a value stock and a dividend play," with a 5.2% payout yield. And its stock is trading at nine times his conservative estimate of $3.25 a share for 2005 -- a ratio far below those of its peers. He figures ING, whose American depositary receipts -- now at 28.88 -- trade on the Big Board, is worth at least 33 but would fetch more in a buyout. In 2006, Schreiber sees earnings slowing to $3.20 partly because of asset sales and restructuring costs. With the elderly facing pension changes in many countries, ING's expertise in financial planning and investing will be at a premium, says Schreiber. Rahul Shah of Standard & Poor's (MHP
) in London rates ING a "four-star buy"(five is tops). ING says its direct banking unit has $164 billion under management, excluding the U.S. It has a further $30 billion from 2.6 million U.S. clients. ING spokeswoman Dorothy Hellenius says: "We continue to see sufficient potential for growth as an independent company."
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2005, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version