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Xstrata's rich seam

The mining giant is poised to bounce back after its recent woes
June 20, 2012

A shareholder revolt over a bonus paid to Xstrata's chief executive has seen the miner's share price slump over the past month, says Robert Craig at www.mbcapital.co.uk.

As such, it is currently not far away from its lowest point in 2012 of 853p. Given the prospect of large-scale intervention in financial markets by the central banks, cyclical companies like Xstrata could benefit handsomely. Go long at 870p, placing a stop-loss below 780p.