STOCKS NEWS US-Bove: banks selling below replication cost

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]

U.S. stock market report [.N]
1111 ET 13Jan2009-Bove: banks selling below replication cost
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Ladenburg Thalmann analyst Dick Bove on Tuesday said the banking industry
could be selling below its replication cost, noting that the 57 U.S. banks and
thrifts with assets above $10 billion held 71 percent of the industry's assets
and 55 percent of its deposits. "Presently, these companies have market
capitalizations that are approximately 10.2 percent of their deposits," it
said, noting that JPMorgan (JPM.N), Bank of America (BAC.N) and Citigroup (C.N)
all had ratios below this.

The three "are selling below the cost of replicating their deposit
gathering capabilities due to fears of excessive loan losses," Bove wrote.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
11:08 ET-13Jan2009 JP Morgan straddle bets rise ahead of earnings-analyst
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The January $25 straddle in JPMorgan Chase & Co (JPM.N) spiked higher after
the bank said it will be ready to issue fourth quarter earnings on Jan. 15
rather than on Jan. 21, said Paul Foster, option strategist at
theflyonthewall.com. A straddle involves both a call and a put on the
underlying stock with the same strike price and expiration date. A buyer
expects the stock to move significantly while a seller hopes the price to stay
stable at the strike price. The JPM Jan $25 straddle is priced at $2.78, up
from a close of $2.10, The Feb $25 straddle is at $5.80. JPMorgan shares rose
3.45 percent to $25.77 in morning trade. JPM February option implied volatility
of 90 percent tops its 26-week average of 71 percent, according to Track Data,
suggesting larger price movement, Foster said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1039 ET 13Jan2009-Elan Corp helps lift biotechs
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Shares of Elan Corp (ELN.I)(ELN.N) rose on Tuesday and helped spark biotech
stocks after the drugmaker said that it had retained Citigroup to conduct a
strategic review which could lead to a sale or merger of the company.

The announcement comes on the heels of yesterday's acquisition of Advanced
Medical Optics EYE.N by Abbott Labs (ABT.N) for $22 per share in cash.

The AMEX Biotechnology index .BTK rose 2.7 percent, led by Nektar
Therapeutics (NKTR.O), up 5.8 percent to $5.33 and Alexion Pharmaceuticals
(ALXN.O), up nearly 8 percent to $37.02.
Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1025 ET 13Jan2009-Nasdaq turns positive on hope for rescue money
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The Nasdaq .IXIC turned positive on Tuesday, erasing early losses as
investors bet that Washington would work quickly on a plea by President-elect
Barack Obama for remaining financial rescue funds to stabilize credit market.

The Dow Jones industrial average .DJI was down 0.1 percent to 8,464.53
while the S&P 500 .SPX was flat at 870.39 and the Nasdaq was up 0.6 percent
to 1,547.49.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net