Shares in 365 Corporation, the firm best known for its irreverent football websites but that is determined to position itself as a "digital media and communications company", received a much needed kick yesterday, closing up 4p at 63.5p.

Driving the rally was news of three telecoms acquisitions in cash and shares with a total value of £4.62m and combined annual revenues of almost £3m.

The deals form part of an effort by 365 to consolidate telecoms hardware firms focused on small businesses in London and the south east. The plan is to buy up small hardware suppliers and use their customer bases to cross-sell 365's other services such as internet access.

Dealers are warming to the strategy, particularly with a growing awareness that 365 appears seriously undervalued. Its market capitalisation is £127m, following a slump in its shares from March's high of 300p.

As telecoms firm trade at an average of 18 times last year's sales, the implied valuation of 365's business division alone is £138m.

Then there is the consumer division. At its full year results in June, 365 reported that its internet services had 2.1m users.

Teamtalk, a rival in this arena, trades at around 18 times sales. On that basis 365's consumer division, which had sales of £14.7m, should be valued at around £275m on its own.

Insiders say growth at both divisions since the year's end has been strong, and with £40m in the bank there are no fundraising worries.

Management appears to be increasingly frustrated by the share performance. Executives have already said they may spin off the business division to realise value if the price does not pick up.

The content of 365, which ranges from music to sport to gardening, could also prove attractive to a more established media player seeking to boost its online presence. Buy for recovery.