THE TIPSTER | Mining opportunities for profit

Tom Welsh
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MINING stocks have seen their fair share of selling this year, but BHP Billiton’s trading update on Wednesday may give the resources giant a chance to shine. Following a decline in its share price of some 10 per cent this year, investors will be hoping for some long-awaited good news. Capital Spreads quotes a price of 1,798.1-1,800.9p,

Meanwhile, Billiton’s rival Rio Tinto is due to publish its latest operations review for the second quarter of 2012. Given recent declines in commodity prices, there is a risk results could come in at the lower end of expectations. Recent comments by Chinese Premier Wen Jiabao about the pace of Chinese recovery in the second part of this year could also weigh. CMC Markets quotes 2,993.52-2,994.50p.

Beleaguered shareholders at Mothercare will be hoping that a trading announcement this week will offer more than a crumb of comfort. The UK remains a tough environment – the underperformance of this division has dominated investors’ minds, blocking out the very promising performance of its international business. Hopefully the retailer’s current turnaround plan will bear fruit, even if it there is a long road ahead. IG Index quotes a price of 193-197p for Mothercare.

Severn Trent holds its annual general meeting tomorrow. The water company is set to face a shareholder backlash over executive bonuses. Despite this, and following criticism of UK water companies in general following droughts earlier in the year, its share price has held up well. Severn Trent has moved steadily above 1,600p since late June, despite fears that the government will encourage competition by removing barriers to new water and severage market entrants. GFT Markets quotes a price of 1,713.3-1,717.7p.