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ING Groep N.V. Message Board

  • pdpdrums pdpdrums Aug 9, 2011 4:17 PM Flag


    what do you think? Think about ING's real book value and how irrational selling has been. Think about corporate earnings? If no recession, it leaves little reason not to buy. The fact that the economy is going to grow slowly is already priced into the market.

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    • you must be on drugs

    • Hi pdpdrums,

      Currently 70-80% of ING's stock turnover is HFT
      (called HighFrequencyTrading, meaning JP.Morgan's computer buys/sells big volumes with Goldman's computer, totally automatic, both holding just for a couple of seconds ING shares, before selling again)

      plus at least 10% of total turnover is arbitrage

      (trying to make 1-5 cents/sh, on USD/EUR rate changes, buying on NYSE and selling on AEX the same time and the same volume, reaping the exchange rate/price differentials),

      and so, at the end, the real investors are in such a small minority, that they cannot exert enough influence to push the prices closer to real value.
      Because those automatic trader- computers programmed by matematiciens from huge financial institutions applying the above 2 techniques, simply overwhelm their transactions, and extremly and absolutely distort ING's share price.

      This makes ING's price 2.8 times more volatile, then S&P volatility.
      ING share price simply become the plaything of the HFT.

      It is time for the FED to ban the HFT in the USA, and punish those who do it severe fines;
      or the AEX, EURONEXT etc. to ban it.

      I estimate that after the ban in just 2 weeks time,
      (the turnover will fall immediately) and the price will start to move closer to the value.

      Anybody from ING, please listen.
      Could you do something in order to help your real investors, to get rid this arbitrage and HFT turnover-generating seconds-timeframe investors,
      in the interest of your real investors?
      It would be just a simple new rule to introduce.

      By the way: the current market turndown is also made by at least 80-90% by those HFT's. It is time to wake up and do something against it.

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