Five Stocks to Watch in July

The U.S. stock market continued its relentless climb in June, making it another record breaking month. The Dow Jones Industrial Average hit an all-time high of 16, 978.02 on June 24th, while the S&P 500 made new all time highs 16 times in the second quarter and set a new record closing at 1,962.87 on June 20th. This month's Five Stocks to Watch include GoPro Inc., which had its initial public offering last week, GW Pharmaceuticals plc, a biopharmaceutical stock known for developing treatments with cannabis, Oracle Corp and Hillshire Brands, both involved in takeovers, and America Movil, which is being bought back from AT&T by former owner, Carlos Slim.

GoPro Inc. (GPRO) – GoPro had its initial public offering last week at $24 per share.

Since then, the camera and media company's stock has soared to $43.40 – its last price in this morning's pre-market — almost doubling in only three days of trading. GoPro stock was up more than 20 percent when it opened for trading after the IPO at $28.50, which was the low of the day. GoPro as a new issue is still in its first week of trading and is definitely a stock to watch in July.

GW Pharmaceuticals (GWPH) – At the beginning of June, UK based GW Pharmaceuticals stock soared after the FDA granted Fast Track designation for the company's treatment of Dravet Syndrome, Epidiolex. In addition, the company has pioneered using cannabis in its drug for multiple sclerosis, Sativex, the first cannabis based medication to gain full approval. After the news, GW stock gained +7.6 percent to $72.93, since then, the stock has risen significantly and is currently trading at $110.49 per share in this morning's pre-market. GW Pharmaceuticals stock closed the month of June at $107.29 per share.

Oracle Corporation (ORCL) – After announcing lower than expected fourth quarter earnings last month, Oracle announced it would be acquiring point of sale and hospitality specialty software company, MICROS Systems (MCRS) in a deal worth over $5.3 billion. The acquisition will give Oracle a foothold in specialty retail and restaurant and hotel software. Also, the buyout includes a property management system known as OPERA, which is used at major hotel chains. Oracle stock is already up +25 percent so far this year.

América Móvil (AMOV) – Mexico City based America Movil just released news that Mexican billionaire, Carlos Slim will buy out AT&T Inc.'s (T) stake in the company for $5.57 billion. The sale will be made to Slim's holding company, Inmobiliaria Carso and includes 24 percent of the company's voting shares. ATT will get $4.57 billion when the sale closes and $1 billion after 60 days. The partnership between Slim and ATT lasted 24 years and is ending in order for AT&T to avoid a conflict in its purchase of DirecTV, which competes with América Móvil for pay TV customers in Latin America. América Móvil shares are on the low end of their yearly range and could see additional upside after the announcement.

Hillshire Brands (HSH) – Yesterday, Hillshire Brands issued a press release stating that Pinnacle Foods (PF) had exercised its right to terminate a previous merger agreement between the two companies. Hillshire's board of directors withdrew their recommendation of Pinnacle's bid to stockholders on June 16th following a bid from Tyson Foods (TSN) for $63 per share or $7.75 billion. Hillshire Brands will pay Pinnacle $163 million breakup fee.

Published on Jul 1, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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