Unusual Machines (UMAC-US)

UMAC

SP: $10.26, M/C: ~$250m, ADV: ~$40m

TD;LR

• UMAC markets as a company posited to benefit from onshoring of drone componentry

• Donald Trump Jr appointed advisor – shares go yippeee!

• Two subsidiaries are worthless resellers of Chinese-sourced parts.

• Stock on ~37x P/S

History

UMAC started life as a Puerto Rican shell company in 2019. It listed in 2024, using the raising proceeds to acquire Rotor riot and Fat Shark – two drone component companies. Collectively these businesses have done ~$5.5m revenues LTM putting the stock on 36x Price-to-LTM sales.

Writing about UMAC here is a bit after the fact. I do so because it stages the foundations for another stock I intend to write about.

Fat Shark makes drone first person view (FPV) goggles for recreational users.

Rotor Riot is a marketplace for drone components & hand-made gear.

UMAC promotes itself as being pro-US drone manufacturing.

Here is an interview of the CEO talking about bringing drone manufacturing back to the US.

You can see where this gets real silly.

A quick glance at the S1 shows that both Fat Shark & Rotor Riot source all inventory from China.

The primary manufacturer of parts for Fat Shark is the co-founders wife.

There are some other oddities such as the auditor being barred by the SEC and the company instructing shareholders how to stop their stock from being able to be used as borrow – these are not the point of the post.