BBA Aviation drops on high volatility

BBA Aviation plc (BBA.L), the 3rd largest miscellaneous transportation company by market capitalisation in the United Kingdom, traded between an intraday low of GBX197.18 and a high of GBX202.0, suggesting a trading opportunity between peaks and troughs. The average daily volatility of 3.4% places the stock in the 3rd quartile in the market meaning it is mildly volatile. Today its volatility (highest price minus lowest price/lowest price) of 2.4% was 2.1 times the average daily volatility of 1.2%, up from 1.3% on Monday and 1.3% on Friday. A price fall on high volatility is a bearish signal. The stock price dipped GBX1.70 (or 0.8%) to close at GBX198.40. Compared with the FTSE 100 index, which rose 36.7 points (or 0.7%) on the day, this was a relative price change of -1.5%.

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RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bullish Signals:

Valuation

- Price/Earnings of 9.6 versus sector average of 10.1 and market average of 8.9. We estimate the shares are trading at a current year P/E of 6.8 and a forward year P/E of 4.8.

- The Q Ratio, defined by James Tobin as MCap divided by Total Assets, is 0.6. Compared with the rest of the market the stock is undervalued.

Performance

- Return on Equity of 15.5% versus sector average of 13.9% and market average of 11.0%.

- Return on Assets of 6.7% versus sector average of 3.9% and market average of 1.2%.

- Return on Capital Employed of 11.8% versus sector average of 9.7% and market average of 13.4%.

Bearish Signals:

Valuation

- Price/Sales of 0.68 versus sector average of 0.4 and market average of 0.7. We estimate the shares are trading at a current year Price/Sales of 0.6 and a forward year Price/Sales of 0.5.

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

- In the United Kingdom market of 1,254 stocks and 158 units traded today, the stock has a 6-month relative strength of 65 which means it has outperformed 65% of the market.

- The volume was 0.5 times average trading of 682,569 shares.

- The last price is at a discount of 12.5% to the 12-month high of GBX226.85 a year ago on 01 Jul, 2011.

- The last price is at a premium of 29.8% to the 12-month low of GBX152.80 ten months ago on 24 Aug, 2011.

- The Beta of this stock is 1.07. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

- The value of GBP1,000 invested one year ago is GBP1,002 [vs GBP948 for the FTSE 100 index], including a capital loss of GBP43 and dividend reinvested of GBP45. The total return to shareholders for 1 year is 0.2%.

Description Value Rank In Market PMAP200 1.1 In Top Quartile RSI 70.5 Bearish Stochastic -11.6 Bearish

DOWNTREND

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 197.3 minus the 26-day EMA of 197.5 is negative suggesting a bearish signal.

COMPANY ANNOUNCEMENTS

Jun 07, 2012: BBA Aviation: ATP Jet Center of Daytona Beach Becomes a Signature Select FBO

[Company Release] Signature Flight Support announced that its affiliate FBO program, Signature Select(TradeMark) has signed an agreement with ATP Jet Center of Daytona Beach International Airport (KDAB) to become a member location. Signature Select offers independent FBOs Signature's world-class systems, service and safety standards, training, sales and marketing processes.

May 29, 2012: BBA Aviation director buys

BBA Aviation (BBA.L) director Simon Pryce bought 6,849 shares worth approximately GBP13,619.9 (US$21,383.3) on May 25, 2012. The purchase price was GBX198.86.

Apr 24, 2012: BBA Aviation Q1 Interim Management Statement

[Company Release] In advance of its Annual General Meeting today, BBA Aviation plc, the leading global aviation support and aftermarket services provider, is issuing an Interim Management Statement for the period from 1 January to 23 April 2012. For the first quarter to 31 March 2012, Group revenue increased by 2%.

Mar 26, 2012: BBA Aviation announces AGM

BBA Aviation has announced its Annual General Meeting will take place on April 24, 2012.

Feb 27, 2012: BBA Aviation will appoint Non Executive Director

BBA Aviation will appoint Susan Kilsby as a Non Executive Director. The effective date is April 10, 2012.