Shares of Martin Aircraft Company Ltd (ASX: MJP) have taken off on another one of their wild journeys today with the stock skyrocketing 17.8% to $1.325, compared to the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) 0.1% rise. Earlier in the session, it was trading 35% higher at $1.52.
Martin Aircraft, which is aiming to commercialise the Martin Jetpack at some point in 2016, is developing a reputation for itself as an extremely volatile stock, and one that most short-term traders would love.
In fact, the stock has experienced no less than 13 days (out of a possible 22) where it has recorded a double (or even triple) digit percentage move since its ASX debut on 24 February 2015, according to data compiled by Morningstar. Seven of those (including today) were positive gains – with the two greatest single-day gains being 124% and 85%. Meanwhile, it has also endured six double-digit losses, with the worst being a 33% decline.
As it stands, the positive days have outweighed the negative. While it debuted with a 40 cent price tag, the stock has since surged 234% – an excellent return by anyone's standards. Although the futuristic nature of the business draws a lot of intrigue it is by no means a stock for the fainthearted.
Given that Martin Aircraft Company isn't even generating any revenue yet, let alone a profit, it's a stock that long-term investors should avoid, at least for now.
A much safer bet than Martin Aircraft
