Investors in jetpack developer Martin Aircraft are on a very wild ride.
Shares in New Zealand-based Martin Aircraft, which were listed on the Australian Securities Exchange just one week ago at 40 cents each, hit a high of $3.15 in early trading on Tuesday.
That's 80 per cent above the closing price on Monday of $1.75.
But at the close of trade on Tuesday, Martin Aircraft had given away all its intraday gains and was 10 cents, or 5.71 per cent, lower at $1.65.
At one point, the stock descended to $1.57.
Martin Aircraft did not announce any news on Tuesday.
On Monday, the company announced a loss of $3 million for the half year ended December 31, 2014, after making a significant investment in research and development and on preparations for the share market listing.
The exponential rise of Martin Aircraft's shares on Tuesday and the subsequent sharp drop left some brokers and investors scratching their heads.
"People like the potential upside of what these sorts of companies offer," said one broker.
"But in terms of what they're all about and why they're moving up, I don't know."
Contributors to the Hot Copper stock market forum were also mystified.
"Does the jetpack go up and down this quick?" asked one.
Martin Aircraft's shares jumped 10 per cent on their debut on the Australian Securities Exchange on February 24.
From the issue price of 40 cents, the shares hit a high of 65 cents before closing at 44 cents. The next day, they closed at 87 cents.
Martin Aircraft is working on delivering its first commercial jetpack in 2016, which it expects could be used for rescue, military and recreational purposes.
The US Department of Homeland Security intends to take the product, which can fly for 30 minutes with a 30-kilometre range at speeds of up to 74 km/h.
Martin Aircraft raised $27 million by issuing shares in the company, many of which were taken up by China-based investor KuangChi Science.
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