Here’s why Martin Aircraft Company Ltd has rocketed 272%: Is it too late to buy?

Martin Aircraft Company Ltd (ASX:MJP) has enjoyed an incredible ASX debut.

a woman

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An early investment in Martin Aircraft Company Ltd (ASZ: MJP) has certainly paid off with the stock having surged a remarkable 272.5% in just five trading days.

The company debuted on the ASX last Tuesday at 40 cents per share. While it was a bumpy ride to begin with (which is certainly fitting for a company engaged in the research and development of jetpacks), the stock has since rocketed to a high of $1.49. It’s up 91% today alone.

The money raised by Martin Aircraft in its IPO has provided funding for the development of the company’s jetpacks – which it describes as “motorcycles in the sky”. They are designed to carry people (up to 120 kilograms) at speeds of roughly 74 kilometres per hour and up to 3,300 feet in the air. The first batch of Jetpacks, with a price tag of roughly US$200,000 per unit, are known as First Responder Jetpacks and have been designed for emergency services such as fire crews or search-and-rescue services.

MArtin Aircraft

Source: Martin Aircraft

Should you buy?

As it stands, Martin Aircraft Company remains a speculative bet. The company doesn’t yet make any revenue (it is seeking to commercialise the Jetpack in 2016) while the viability of its products are of course subject to strict regulatory conditions. An example of this is the recent ruling by the U.S. Federal Aviation Administration regarding commercial drone use which has hindered the plans of companies such as Amazon.com, Inc. to use them for package deliveries.

Still, Martin Aircraft’s products appear to have some commercial viability and could prove useful down the track. However, given the stock’s recent surge, investors may want to let the market ‘cool its jets’ before considering a buy. In the meantime, The Motley Fool’s top analyst has uncovered another incredible tech stock well worth your money today.

Motley Fool contributor Ryan Newman owns shares in Amazon.com, Inc.. You can follow Ryan on Twitter @ASXvalueinvest.

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