Defence-sector company AVON “is engaged in the design, and manufacture of respiratory protection products for defense, first responder and industrial users.”
Today it issued an RNS (http://is.gd/Rsig9R) stating that it was awarded a contract to supply 52,000 if its C50 respirators and the new MILCF 50 filters to a Middle Eastern Customer. It expects to fulfil those orders during FY2014.
This send the shares 3.2% higher to 496p. It was one of the shares I had chosen for 2013 (http://is.gd/iL4C3a). Shares are up 34% YTD, well ahead of the Footsie. I just wish the same could be said for some of the other shares I chose!
AVON was selected as a momentum share, and has delivered on that expectation. It hasn’t be a uniform process, though. You would have had periods of underperformance.
The vital stats that I am currently using for momentum are: PER 15, RS6m 19%, PV50 6.9%. This, coupled with the fact that the market has responded well to the news, suggests to me that there is still momentum left in the company.