A brief introduction for the time being.
The past month has been an exciting time for myself. It is the most volatility I've experienced since i first begun investing. Falling markets should put smiles on the serious value investors mind as it provides opportunity. One of the most important lessons I've learned is that allocation of funds, in particular, how much to allocate to a particular stock and how much not to allocate is a puzzling idea.
The post will be about a stock I've deemed undervalued and in my opinion, provides protection of principal. Contrasting my idea that this is a low risk play, with the common market, which deem this a high risk play is striking, but doesn't phase me. People disagree with me all the time. Every time you buy a stock, the person selling it, most likely has the opposite view of the stock to you. There shouldn't be a problem with this. This stock may fall 45% tomorrow or it may not. But remember, as the price falls, it becomes more attractive (in this specific example).
I'll post more details later but the company is called WDS Limited (ASX: WDS). It mainly operates in the mining and energy markets. Despite deteriorating fundamentals driven by the mining service sector, WDS's multifaceted earnings stream might provide some light. However, this isn't the reason for purchase. I'll write more on this when i get more free time. Happy hunting over the holiday period :)
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