It's been a bumpy ride for shareholders of the recently-listed Martin Aircraft Company Ltd (ASX: MJP), but those who held on for the journey have been well-rewarded today.
Since roughly 11:30am (AEST), the stock skyrocketed an astronomical 85.1% to trade at $1.24 at close. That compares to a 0.3% decline for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) for the day.
So What: Investors in the New Zealand-based Jetpack developer are no stranger to the excitement that Martin Aircraft can tend to provide. In its first week as an ASX-listed company, the stock skyrocketed by as much as 688%, clocking out at a high of $3.40. Before long, it retreated an alarming 82% to just 62.5 cents.
It seems the trading activity surrounding the excitement machine is based on speculative punts. As it is, Martin Aircraft is a loss-making business that hasn't even begun recognising revenue yet, let alone profits. While the futuristic nature of the business certainly offers plenty of intrigue, the wild swings in the share price suggest investors find it hard to value the business. Check out its one-month chart below:
Source: Google Finance
Although, Martin Aircraft has today reminded investors that it is capable of delivering astronomical returns, it would also pay to remember that this company hasn't yet proven its viability as a worthwhile investment.
