Martin Aircraft Company Ltd (ASX: MJP) is proving to be a volatile investment, which is somewhat fitting given the nature of its business.
The New Zealand-based company, which listed on the ASX a little over a fortnight ago, is aiming to commercialise the Martin Jetpack by sometime next year. Indeed, the company's prospects had the market excited with investors bidding the stock as much as 687.5% higher, within its first week as a public company.
While the stock provided plenty of excitement on its way up; the downward plunge has been equally terrifying. In fact, the stock has fallen a further 16.7% today to be trading at just 90 cents. While investors who bought shares in the float are still sitting on a handsome profit, there's no hiding the fact that the stock has plummeted more than 71% in just over a week.
Notably, at its high of $3.15, the company had a market value of almost $770 million, which is almost unprecedented for a loss-making business that is pre-revenue. While the futuristic nature of the business offers intrigue; the stock's recent activity shows just how dangerous it is to get caught up in a stock based on hype, whilst forgetting the importance of price.
Even at today's price of 90 cents Martin Aircraft still seems like one to avoid, although it could certainly be deserving of a position on your watchlist.
