Five Stocks to Watch in September

The U.S. stock market ended August with a bang as the S&P 500 index made its fourth record high in five days Friday and ended August +3.8 percent higher, its best monthly gain since February. The S&P ended the month at 2,003.37, up +6.63 or +0.33 percent on Friday, just shy of its all time high of 2,005.04 made earlier in the week.

Other indices were also higher in August, with the Dow Jones Industrial ending the month at 17,098.45, up +18.88 or +0.11 percent on Friday and just slightly lower than its all time high made in early July. September is traditionally a difficult month for the stock market, and with a correction overdue according to some analysts, a significant selloff might be in store, especially if the Fed begins to tighten.

Apple Inc. (AAPL) – Apple Inc. is prominently featured in the news today as it begins inquiries with the FBI into a hack to its iCloud, which resulted in nude photographs of celebrities being released to the public. In addition to its release of the company's new iPhone on September 9th, Apple is also expected to unveil a wearable device and has just reached agreements with major credit card companies to turn the iPhone 6 into a digital wallet.

Dollar General Corporation (DG) – This morning, Dollar General announced it was raising its all cash offer for Family Dollar Stores (FDO) to $80.00 per share and offered to divest as many as 1,500 stores and to pay Family Dollar a $500 million reverse break-up fee if required by the FTC to avoid anti-trust issues. Family Dollar had rejected Dollar General's original bid of $8.9 billion in favor of an earlier $8.5 billion bid made by Dollar Tree (DLTR) on August 20th citing anti-trust concerns.

Digital Ally Inc. (DGLY) – With civil unrest in Ferguson, Missouri erupting in early August, Digital Ally's wearable digital camera for law enforcement became a hot item. So hot, that Digital Ally's stock has gone from $3.65 on August 18th to $21.01 in premarket trading this morning, up +2.35 or +12.59 percent. Digital Ally stock closed the month of August at $18.66, up +2.98 or +19.01 percent.

Tekmira Pharmaceutical (TKMR) – Tekmira Pharmaceutical is currently being considered a possible takeover target after Roche's takeover of InterMune (ITMN) last month. Tekmira received $140 million from the U.S. Department of Defense to develop a treatment for the Ebola virus which is currently spreading throughout Africa. The company is also developing a treatment for hepatitis B. Tekmira stock was trading under $15 per share in early August and is currently trading at $21.26, down -0.14 or -0.65 percent in Monday's premarket.

General Motors (GM) – After getting hit with a $35 million fine from the NHTSA for an ignition defect which involved the death of 13 people in May, and a recall of 8.2 million cars in June, the automaker was served a subpoena on July 28th for possible violations of civil fraud law in the underwriting criteria of the General Motors Financial Company. The company is being investigated for subprime auto loans made through a Texas subsidiary it bought in 2010.

Published on Sep 2, 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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