BBA Aviation rises on high volatility

BBA Aviation plc (BBA.L), the 4th largest miscellaneous transportation company by market capitalisation in the United Kingdom, traded between an intraday low of GBX197.03 and a high of GBX201.0. The price range has expanded in the last two days (from GBX3.90 two days ago to GBX4.0 today) which, accompanied by a price rise, is a bullish signal. 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 2.0% was 2.3 times the average daily volatility of 0.9%, up from 1.4% on Tuesday and 2.0% on Monday. A price rise on high volatility is a bullish signal. The stock rose for a second day on Wednesday bringing its two-day rise to GBX4.0 or 2.0%. The stock price rose GBX1.40 (or 0.7%) to close at GBX200.0. Compared with the FTSE 100 index, which rose 77.0 points (or 1.4%) on the day, this was a relative price change of -0.7%.

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RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bullish Signals:

Valuation

- Price/Earnings of 9.8 versus sector average of 10.8 and market average of 9.0. We estimate the shares are trading at a current year P/E of 6.9 and a forward year P/E of 4.9.

- The Q Ratio, defined by James Tobin as MCap divided by Total Assets, is 0.7. Compared with the rest of the market the stock is undervalued.

Performance

- Return on Equity of 15.5% versus sector average of 14.0% and market average of 11.0%.

- Return on Assets of 6.7% versus sector average of 3.8% 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 0.69 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 1,298 stocks and 158 units traded today, the stock has a 6-month relative strength of 72 indicating it has outperformed 72% of the market.

- The last price is at a discount of 11.8% to the 12-month high of GBX226.85 a year ago on 01 Jul, 2011.

- The last price is at a premium of 30.9% to the 12-month low of GBX152.80 ten months ago on 24 Aug, 2011.

- The Beta of this stock is 1.08. 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 GBP997 [vs GBP958 for the FTSE 100 index], including a capital loss of GBP48 and dividend reinvested of GBP45. The total return to shareholders for 1 year is -0.3%.

Description Value Rank In Market PMAP200 1 In Top Quartile

AGGREGATE VOLUMES, PRICES AND TURNOVER PERIOD

London Stock Exchange: BBA.L 240,397 [VI of 0.4]; volume 93.69% of aggregate. Price: GBX200.0.

OTC Pink: BBAVF.PK 16,200 [VI of 51.9]; volume 6.31% of aggregate. Price: US$3.17. Using the current exchange rate of USD1 equals 63.97GBX, the shares are at a 1.4% premium to the close price in the United Kingdom Stock Exchange.

Aggregate volume: there were 256,597 shares worth traded. The aggregate volume was 0.4 times average trading of 635,844 shares.

UPTREND

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 199.9 minus the 26-day EMA of 199.5 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

COMPANY ANNOUNCEMENTS

Jun 20, 2012: BBA Aviation: Dividend Declaration

BBA Aviation plc announces that a dividend has been declared for the half year to 31 July 2012 of 2.5 pence per share payable to holders of the 5% cumulative preference shares of Pound1 each. The relevant dates relating to this dividend payment are as follows: Record date 6 July 2012 Payment date 1 August 2012 The above information is disclosed under paragraph LR 9.7A.2 of the Listing Rules.

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.