InTheMoneyStock...'s  Instablog
Send Message
InTheMoneyStocks.Com is a research and consulting company focused on mathematical proprietary techniques along with a key understanding of price, pattern and time. Through understanding geometry and other technical analysis methods, InTheMoneyStocks.Com prides itself on avoiding Wall Street hype... More
My company:
My blog:
Pro Traders Rant and Rave Blog
  • Deutsche Bank AG Or Bailout Bank? 0 comments
    Jul 14, 2014 3:53 PM | about stocks: DB

    So here we go again with another banking crisis in the Eurozone. How many times have we heard this phrase over the last few years. This latest disruption is coming from Portuguese bank Banco Espirito Santo, the second largest in the nation. This is just a few years removed from the country itself requiring a bailout from the EU, as it received a 78-billion euros in rescue funds in May 2011. So how have all these bailouts affected one of Europe's largest banks, Deutsche Bank AG (NYSE:USA) (NYSE:DB)?

    In May of 2007 the share price of Deutsche Bank AG (USA) (NYSE:DB) hit a record high of $159.76. It took a nose dive along with other banks and equity markets around the globe, as the "containable" sub-prime crisis could not be contained. Deutsche Bank's share price bottomed out in Jan 2009 at a price of $21.13, declining a gut-wrenching 86%! However, after making that low, shares of the German bank were able to move up an amazing 300% to $84.93, on a snap back rally. Since that time the stock price of Deutsche Bank AG (USA) (NYSE:DB) has gone sideways to lower, while Germany's DAX Index (Frankfurt Stock Exchange) has ascended to new all time highs, just like the U.S. markets.

    So why this huge under performance? I attribute it to all the bailouts needed over the years for Greece, Ireland, Portugal, Spain and Cyprus. Deutsche Bank AG (USA) (NYSE:DB) is one of the largest lenders in Europe and its exposure to such weak countries is immense. The EU has slowly grown its members to close to 30 countries. However, the countries that are joining are not economic powerhouses of any sort. Take a look at the list of nations who required bailouts and you will see that they have given up their weak currencies to adopt a much stronger one in the Euro. By doing so they are not doing their GDP any favors, as their exports will get hurt with a far superior currency by adopting the Euro. The chart of Deutsche Bank AG (USA) (NYSE:DB) is telling us all we need to know about how adding more weak nations to the EU will not do this stock any favors to the upside.

    Parm Mann

    (click to enlarge)

    Stocks: DB
Back To's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Utility #stocks leading markets higher despite slightly higher yields in the 10-year U.S. #Treasury. $SO, $ED, $XLU all higher today.
    Apr 20, 2015
  • $YELP Forming Bearish Chart....
    Apr 13, 2015
  • $WMT bearish base, daily 200-day ma. Should drop to the $78.00 level & present a good entry level to buy the stock.
    Apr 10, 2015
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.