Portfolio Update: Prepare for the September Swoon

AstraZeneca (AZN), our European blue chip, continues its steady march upward. Always looking to link up with innovative companies, AZN recently announced that it is collaborating with Cellartis, a Swedish biotech to create tests to identify drugs that damage the liver or the heart. The stock is up almost 10% since we recommended it in July. That’s an annualized rate of 70%. Hold on for more upside.

Cognizant (CTSH) is another double-digit percentage gainer for the portfolio, and you’ve already taken 60% profits on the options. Investment bank Credit Suisse just initiated coverage with a bullish rating — putting this outsourcing play on the screens of Wall Street. Our target price in this stock is $78. That’s up 12% from current levels, so hold onto the stock for now.

Acergy (ACGY) has been the Global Bull Market portfolio’s biggest winner this summer — up almost 20% in just the last month. Morgan Stanley just initiated bullish coverage of the stock, noting that the number of planned deep water projects is up 88% just this year. These factors should underpin demand for deep water infrastructure well past 2010.

With the commodities bull taking a breather, BHP Billiton (BHP) has been locked in a trading range, despite record earnings of $10.45 billion announced last week. What will break the stock out of its doldrums? Workers at Chile’s Escondida mine voted Thursday to end a strike that had sent international copper prices on a 25-day roller coaster ride. The stock also goes ex-dividend this week, which may put the stock under short term pressure.

In last Tuesday’s Global Guru, I discussed Chinese companies’ tendency to flub acquisitions — as China Mobile did with our current global cell phone play, Millicom International. (MICC). Undaunted, Millicom continues its relentless pace of global expansion. The company announced on Friday that it acquired control of Colombia Movil, the third largest mobile operator in Columbia, for $125 million. That only ups the potential price for Millicom — a hot acquisition target.

Last week’s pick, Frontline (FRO), went ex dividend on Tuesday, causing its stock price to dip, as we predicted. Those of you who bought the stock on Monday are entitled to the $1.50 dividend to be paid around Sept. 18. That’s well above a 3% return in about three weeks. Frontline also appointed a new CEO last week to help lead the company in its next stage of development.

Icon plc, (ICLR) our Irish biotech play, announced a proposal for a 2-for-1 stock split. Shareholders will vote on the measure at a meeting on Sept. 29. If approved, each shareholder will receive one share for each one held on Oct. 13. The stock is up 4% during the last month.

P.S. I would like to invite you and a guest to join me this fall at The Money Show in San Francisco. This exclusive event will be held at the San Francisco Marriott, Oct. 16-18, and will feature the country’s premier policy analysts, advisors, and money managers including Mark Skousen and Doug Fabian. Join me for my special presentations, such as the Five Global Bull Market Megatrends That Will Make You a Fortune, Wed., Oct. 18, 2:10 pm – 2:55 pm. Register for free admission to The Money Show in San Francisco by calling 800/970-4355 (be sure to mention my name, Nicholas Vardy, and priority code #006953) or visit: http://www.sanfranciscomoneyshow.com/ms/sanfran/?scode=006953. I hope to see you there — this could be the best investment decision you make all year!