Martin Aircraft Company Ltd (ASX: MJP), a company aiming to commercialise jetpacks, listed on the ASX just over a week ago and has already provided an enormous level of excitement – and probably a few heart attacks too.
After having opened at just 40 cents, the shares surged by as much as 687.5% to a record high of $3.15. Their decent has been just as quick, with the jetpack-hopeful now hovering 61% lower at $1.21.
Source: Yahoo! Finance
Indeed, it definitely seems as though the market got ahead of itself on this one. At $3.15, Martin Aircraft Company's market capitalisation was sitting just below $770 million – a mind-blowing valuation for a company which recently reported a $3 million half-year loss and doesn't even expect to start making revenues until the second half of next year.
In saying that however, Martin Aircraft Company is a stock worth keeping an eye on. While the futuristic nature of its products is difficult to grasp, it could certainly hold some promise. The initial jetpack product is being developed for emergency services which could revolutionise the way in which search and rescue or other emergency operations are conducted.
Whether or not the jetpack idea gets off the ground is another story. First of all, its products will cost around US$200,000 per unit, while they will also be subject to strict regulatory approval. As an example, Amazon.com, Inc.'s plans to use drones to deliver packages were recently quashed by the US Federal Aviation Administration – should similar limitations be set for Martin Jetpacks, the game could be over before it even begins.
As intriguing as Martin Aircraft company is, investors would be wise to let the market cool its jets before considering a buy. In the meantime, The Motley Fool's top analyst has just uncovered another ultra-promising tech stock which is trading at a much more compelling price and it could be worth a look today.
Get The Motley Fool's BEST TECH STOCK – FREE!
