BBA Aviation drops to six-month low

BBA Aviation plc (BBA.L), the 4th largest miscellaneous transportation company by market capitalisation in the United Kingdom, traded at its 130-day low of GBX183.70. The stock fell for a second day on Monday bringing its two-day fall to GBX5.40 or 2.8%. The stock price declined GBX4.80 (or 2.5%) to close at GBX184.30. Compared with the FTSE 100 index, which fell 123.0 points (or 2.2%) on the day, this was a relative price change of -0.4%.

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RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bullish Signals:

Valuation

- Price/Earnings of 9.0 versus sector average of 10.3 and market average of 9.2. We estimate the shares are trading at a current year P/E of 6.4 and a forward year P/E of 4.5.

- 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 13.1% and market average of 11.0%.

- Year-on-year earnings growth of 39.1% versus sector average of 19.8% and market average of 8.5%.

- Return on Assets of 6.7% versus sector average of 4.0% and market average of 1.1%.

- Return on Capital Employed of 11.8% versus sector average of 10.3% and market average of 13.9%.

Bearish Signals:

Valuation

- Price/Sales of 0.63 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.

Description Value Rank In Market Price Earning Growth Ratio 0.2 In Top Quartile

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

- In the United Kingdom market of 1,129 stocks and 145 units traded today, the stock has a 6-month relative strength of 49 which means it has underperformed 51.0% of the market.

- The volume was 0.5 times average trading of 634,533 shares.

- The last price is at a discount of 16.3% to the 12-month high of GBX220.10 on 27 Mar, 2012.

- The last price is at a premium of 20.6% to the 12-month low of GBX152.80 on 24 Aug, 2011.

- The Beta of this stock is 1.1. 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 GBP902 [vs GBP932 for the FTSE 100 index], including a capital loss of GBP139 and dividend reinvested of GBP41. The total return to shareholders for 1 year is -9.8%.

Description Value Rank In Market RSI 27.9 Bullish Williams %R -96.6 Bullish

DOWNTREND

- The stock has weakened below its Exponential Moving Average Price (EMAP). Also, its 12-day EMAP is trailing the 26-day EMAP.

- The stock dropped on high volatility today.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 190.5 minus the 26-day EMA of 193.8 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish 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.