The recent weak market performance has extended to a number of smaller stocks which enjoyed significant share price gains in 2013 but which have struggled in 2014. While it could be a case of share prices moving too far ahead of value, some of these 'rising stars' have continued to report positive news in 2014 and their lacklustre share price performance may have created a buying opportunity.
Here are two companies that could be worth a closer look.
Nearmap Ltd (ASX: NEA) provides online aerial photomapping to clients across a range of industries including insurance, engineering and utilities. Having launched its services in Australia, Nearmap is now planning on expanding its operations into the USA which could provide enormous growth for the business.
Shareholders enjoyed a rise in share price from just 7 cents at the beginning of 2013 to 55 cents by the end of 2013, however, in 2014 shareholders have been treading water with the stock retreating 7%.
Certainly Nearmap's results over the past reporting season have continued to be impressive with the firm recording an underlying profit of $1.3 million in FY 2014 compared with a loss of $1.7 million in FY 2013.
Emerchants Ltd (ASX: EML) is a financial services group that provides a range of pre-paid cards to clients including not-for-profit organisations, government entities and corporates.
The share price rallied from under 25 cents to over 60 cents in calendar year 2013. Things haven't gone so well in 2014 however, with the share price backtracking 20% to 50 cents. This can possibly be explained by the flat revenue growth recorded year on year to 30 June 2014.
Despite the low revenue growth, Emerchants has continued to announce a number of new customers which should flow through to the top line sales in coming periods.
