Fidelity's Wright: My top three undervalued income stocks

My top three undervalued income stocks

Alex Wright, manager of the Fidelity Special Values investment trust, looks at smaller companies which are due a re-rating in 2015.

Equity valuations today suggest the stock market is playing host to a group of investors who, if they were honest, would probably prefer to have their money safely tucked away in the fixed income market. However, historically low bond yields have pushed them out of the comfort of the fixed income market in search of a more attractively priced income stream. To such investors, the shares of companies with a low volatility of earnings and highly predictable near-term cashflows represent a logical step. But in recent months the prices of large, liquid companies with secure cashflows have be...