Added a 5% tranche to Deutsche Bank  (DB) at $28.66.   Deutsche Bank is perhaps the most hated bank in the world.   From a sentiment point of view, when something is most hated, it is usually the time to buy.   Based on our analysis, Deutsche Bank can easily handle a Greek sovereign default.   At this price, a Greek default is more than priced in.   However, if the contagion spreads and there are defaults in Portugal, Spain, Italy and Ireland, then this call will be wrong.

We are initiating a 5% tranche on Deutsche Bank  (DB) at $31.39. This is a very lon- term position. Deutsche Bank is the largest German bank. Please see prior entry. German stocks are being slaughtered on a report that Germany is taking steps to protect its banks against a Greek default. BUY WHEN THERE IS BLOOD IN THE STREETS. It is getting close in some European stocks.