Fairpoint’s performance is expected to be aided by the acquisition of Colemans and Simpson Millar, with the integration of both companies progressing well. And while the first three months of the year have been quieter than anticipated in conveyancing services, the outlook for the wider company remains upbeat.

With Fairpoint trading on a price-to-earnings (P/E) ratio of just 6.6, it seems to offer a wide margin of safety. Certainly, further volatility in its share price can’t be ruled out, but for long-term investors it remains a relatively appealing buy at the present time.

Potential target

Also among the major movers today is 32Red (LSE: TTR). It’s down by 10%, although the online gambling company is still up by 80% in the last year. It hasn’t released any significant news flow today to prompt the share price fall and with it having upbeat earnings growth prospects, 32Red seems to be more likely to soar rather than suffer from a colossal correction.

In fact, 32Red is forecast to increase its bottom line by 62% in the current year and by a further 28% next year. This puts it on a price-to-earnings-growth (PEG) ratio of just 0.3, which indicates that now could be a good time to buy it for the long term. That’s especially the case since there’s a considerable amount of consolidation ongoing within the gaming sector and while 32Red may or may not be taken over, it retains bid potential due to its strong financial outlook.

On the up

Meanwhile, shares in ULS Technology (LSE: ULS) have risen by 12% today despite no significant news flow having been released by the company. Of course, market sentiment has been buoyant since ULS released a trading update in mid-April where it stated that results for the year are expected to exceed market expectations.

In fact, ULS announced that revenue is due to be around 28% higher and adjusted profit before tax 31% higher as its strategy of growing the number of trading relationships it has with challenger banks and mortgage intermediaries continues to work well. As a result, ULS’s order book has been well ahead of the same point in the previous year, which bodes well for its long-term future.

Certainly, there are fears surrounding the health of the UK housing market, but with ULS being confident in its outlook and predicting strong growth, its shares look more likely to be positive rather than negative in future.

The post Are ULS Technology plc (+12%), 32Red plc (-10%) and Fairpoint Group plc (-9%) on the cusp of colossal corrections? appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Not a day goes by without news that can make some investors fear the worst, sell up and park their hard-earned cash on the sidelines, waiting for the news to get better. It is usually the case that things do get better, often leaving those who sold up buying back in at a higher price. For those investors that repeat this practice, it can be a real value-destroying experience.

This type of behaviour is often seen with small caps. The share prices of these smaller businesses can and do move about all over the places, sometimes because of a business article in the press, sometimes because of institutional selling or buying. They can often lag a rising market, but hold firm as the main indices fall with general macro-economic news.

With that in mind, I’m highlighting three businesses that have suddenly sprung back to life after lagging the market on little to no news:

The Pass Master

Accesso Technology Group (LSE: ACSO), formally known as LoQueue, is engaged in provision of queuing and ticketing technology solutions to theme parks, water parks and zoos, cultural attractions and sporting events.

As can be seen from the chart, the share price has trended downwards — this despite a decent set of results in March. Any investors who got bored and sold up will be kicking themselves as the company released two items of news:

• The first piece concerned the signing of a seven-year agreement with one of the largest global visitor attraction operators, Merlin Entertainments Group , to provide its fully hosted onsite ticketing and e-commerce solutions across the operator’s global portfolio;
• And the second reiterating guidance for 2015, upgrading guidance for 2016, and materially upgrading guidance for the year ending 2017 due to strong contract momentum across the business.

With the shares trading at 23 times forecast forward earnings, and no dividend to speak of, they don’t scream cheap; however, I still believe that they are. You see, the price to earnings growth ratio, or PEG, is 0.75. Anything between 0.5 and 1 is usually considered good value as the market hasn’t yet priced in the growth to come, at least not yet.

One Per Month

Next up, 1pm (LSE: OPM) is a UK-based leasing company. The company is engaged in providing equipment lease rental finance to United Kingdom businesses. The company finances a range of business assets to small and medium enterprise (SME) finance.

Again, we can see how the company share price had lagged the market; indeed, this was the case for at least the last 12 months, as investors seemed to get bored with management’s decision to position the company for further growth by moving to bigger premises and recruiting additional staff.

It wasn’t until June that investors became interested again, as management announced that the preliminary results were expected to be significantly above market expectations due to exceptionally low bad debt.

Additionally, following the final results, management announced what looks like a smart acquisition of MH Holdings. This is expected to significantly enhance earnings of the next few years, whilst also opening up cross-selling opportunities and new markets, such as commission revenue from vehicle brokers and from equipment suppliers.

The deal is being funded by a placing and open offer, so I would expect some share price movement going forward but, over the long term, I trust management to plot a steady, profitable route.

The Legal Eagle

The final company that caught my eye is Fairpoint (LSE: FRP). The group plc is a provider of consumer professional services, including debt solutions and legal services. The company has four segments: individual voluntary arrangements (IVA) services, debt management plans (DMP) services, claims management and legal services.

Again, we see a similar pattern, with the shares trending downwards until recently when management announced that results would be in line with their expectations. In a separate announcement, investors were also informed about the group reaching an agreement to acquire the trade and assets of Colemans-CTTS LLP, CT Support Services Limited and the entire ordinary share capital of Holiday TravelWatch Limited (together referred to as “Colemans“), a consumer legal services business for an initial consideration of £9.0 million in cash and shares. Management expect the acquisition to be immediately earnings enhancing.

Despite the strong rise in the share price, the shares only trade on a forward multiple of just over 8 times earnings and are expected to yield over 4%. It is also worth remembering that brokers are likely to increase their forecasts going forward. According to data from Stockopedia, broker consensus EPS has increased from 17.24 pence in August 2014 to 18.15 pence currently, and I wouldn’t be surprised to see these figures increased further going forward.

The post 3 Small-Caps Beating the Market: Accesso Technology Group plc, 1pm plc & Fairpoint Group plc appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Dave Sullivan owns shares in Accesso Technology and 1pm. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.