Martin Aircraft Limited (Code: MJP) listed on the ASX yesterday at 40 cents. Today buyers continued to push the share-price higher more than doubling the issue price before the market close.
My first impressions: Spectacular technology, bordering on science fiction, realizing mankind’s unfulfilled dream to fly like a bird. But wildly impracticable as a business enterprise in which to invest.
The innovative Martin Jetpack has been 3 decades in the making, and is still being improved. They have been flown at heights of up to 5000 feet, but only for periods of up to 30 minutes. It can be flown manned as an ultimate ultra-light helicopter-simulating aircraft lifting up to 120 kg, or it can be flown unmanned by remote control. They can be fitted with automatically releasing parachutes to increase pilot safety.
They are not yet in production. The target is for the 2nd half of 2016. Yet it is an invention that is drawing considerable interest by the police, emergency search and rescue organisations, and the army. Their ability to lift considerable weights in vertical take-offs and landings is an advantage over the existing unmanned aerial vehicles (UAV) made in the US. Such craft might allow army personnel to access rooftops and confined spaces, and might be used for surveillance.
The Jetpack has drawn interest from the Hong Kong based company KuangChi Science who have become a cornerstone investor with a $21 million stake. They have the capacity to introduce further modifications to improve the performance. They have also had support from the famous venture capitalist Pitch Johnson who is spoken of as the Father of Silicone Valley.
Technical considerations This post makes no recommendation for or against an investment in Martin Aircraft Limited. In trading today there has been strong buying activity taking the share-price from support at 40 cents to a high of 91 cents before easing to close at 87 cents. From here, the next resistance is likely to be a psychological one at the $1 barrier. There are likely to be many profit-takers at these share-price levels, and one would expect a corrective move lower to emerge sometime.
Categories: Business, Chart Analyses, Company review
Pretty crazy day for MJP today! Stock hit a high of $3.15 before closing at $1.65… Be nice for anyone who got in at the IPO price who held until today!
Thank you for commenting. MJP has had an amazing flight thus far but I’m not sure where it will land.
Indeed you’re right, it’s been able to generate plenty of nice jetpack-themed puns for all stock market analysts so far. Seems to be coming back down to earth a little in recent trade.