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This American Drone-Motor Company Is Positioned For "Massive Procurement Tailwind"
Looking at the state of modern warfare, H.C. Wainwright analyst Amit Dayal initiated Unusual Machines with a "Buy" rating, telling clients the drone-part maker is emerging as a key player in "anchoring the US drone industry's sovereign supply chain."
Dayal called UMAC a "pure-play, American-made, NDAA-compliant drone-component manufacturer" that is perfectly positioned for a "massive procurement tailwind" across the US drone industry as the US government races to stockpile everything from one-way attack drones to interceptor drones.
What's key about UMAC is that it makes NDAA-compliant parts for drones. Its product portfolio spans flight controllers, electronic speed controllers (ESCs), analog video systems, FPV headsets, drone motors, and, pending the Upgrade Energy acquisition, batteries, with multiple products approved on the Blue UAS Framework.
Dayal estimates the US-made drone parts market could reach $3 billion to $5 billion as the Department of Defense and US drone manufacturers seek secure alternatives to Chinese suppliers.
US Drone Parts Market Forecasted to Boom
Six UMAC components, including its Brave F7 flight controller, Brave 55A speed controller, and Aura FPV camera, have been approved for the Defense Innovation Unit's Blue UAS Framework.
The top catalyst is the DoD's roughly $1 billion Drone Dominance program, which is intended to rapidly expand the US inventory of small, inexpensive, and attritable drones.
The first procurement phase covers about 30,000 drones, while the next phase is expected to order roughly 60,000 systems during the second half of 2026. Additional phases could drive demand for approximately 250,000 drones in fiscal 2027. More than half of the initial vendors selected for Drone Dominance were already UMAC customers in some capacity, according to Dayal.
"A massive procurement tailwind underpins a multi-year unmanned-systems cycle," the analyst said, adding that UMAC is "building a vertically integrated, 'Made in the USA' component platform."
Cost to Buld a FPV
UMAC operates across 62,500 square feet at five manufacturing sites and its Orlando headquarters. The company's 17,000-square-foot motor facility began operating in October 2025 and was producing about 15,000 motors per month by March, with production forecasted to reach 100,000 motors per month later this year.
Global Drone Market Forecast
Global Drone Parts Market Forecast
Dayal has a 12-month price target of $42 on UMAC. Analysts tracked by Bloomberg have an average target of $36.
Shares were trading around $20 on Wednesday morning.
In the previous report, we focused on AeroVironment, Ondas, Red Cat, AEVEX, Redwire, Insitu and Teledyne FLIR. Private companies covered included Anduril, Skydio, Shield AI, Quantum Systems, Performance Drone Works, DZYNE, Firestorm Labs, and Neros.
Tyler Durden Thu, 07/23/2026 - 11:30Is the ‘Her Private Hell’ Horror Movie Streaming on Netflix or Amazon Prime Video?
Heidi Klum enjoys snack sans bikini top in steamy beach video
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"Closing Time" On The AI Bubble Is Sooner Than Most Think; Ed Dowd Warns Iran War Brings Global Recession Closer
Via Greg Hunter’s USAWatchdog.com,
Wall Street money manager and financial analyst Ed Dowd of PhinanceTechnologies.com warned at the end of May we could see “$250 a barrel oil and 11% inflation as a worst-case scenario in 2026.”
That didn’t happen... yet. Dowd explains, “We had two scenarios when we talked last..."
" One was the conflict would get resolved in the April – May time frame.
Oil would peak out around $125 (per barrel), and inflation would peak out in May and go lower.
That’s what happened, but recently, MOU (Memorandum of Understanding with Iran) has been torn up and oil is back on the rise.
Oil collapsed to around the low $70s to high $60s after the MOU. It’s now $80 and change.
So, unless this is resolved quickly, the other scenario is on the table...
If the conflict continues and gets worse, and you want to watch it progress, if we break out technically, meaningfully to $100 to $125, and back test and hold support, then the next level is $200 to $250 a barrel.
All we are talking about here is my thesis that we are going into a global recession, and it gets pulled forward that much quicker. We will have a burst of inflation and massive demand destruction.”
The Iran/US war is not the only headwind Dowd sees.
AI (artificial intelligence) investment is in bubble territory according to Dowd, and the lights are about to go out on that trade. Dowd says:
“The stock market is 45% AI and AI adjacent.
When the equity market figures out the party may be slowing or it’s over, that will affect the stock market.
It’s a feedback loop that I think is beginning. Let’s call it the AI summer of discontent...
Closing time is closer than most people think. The party has been going on for a while.
We had this huge impulse in semiconductor stocks in April and May. The indices have 17% to 19% of the S&P 500, the semiconductor index.
That is a warning sign in and of itself. This is a notoriously cyclical boom and bust industry... There is inflation going on in this... AI build.
All the projections of return on investment are going the way of the dodo bird because they are now paying exorbitant prices for commodity memory chips. Also, power costs are going up, and they have to build power plants. The whole math does not work with the AI infrastructure in the credit driven AI complex.
So, the math kind of implodes on itself at some point...
I think the party is closer to the end than the beginning, and closing time will be upon us soon.”
When the AI bubble pops, Dowd expect a “nasty pullback in the stock market.”
This is why Dowd is telling investors to raise cash levels just like famed investor Warren Buffett is doing by holding record amounts of cash in his fund. Dowd says, “Cash is dry powder.”
And for those who think the US dollar is going to tank, Dowd thinks just the opposite and says, “The dollar looks quite bullish.”
Dowd still likes gold as a core asset, and his target price is unchanged at $10,000 per ounce in the next few years.
There is much more in the 34-minute interview.
Join Greg Hunter of USAWatchdog as he goes One-on-One with money manager and investment expert Ed Dowd as he explains why he is still seeing big trouble for the US economy. Dowd predicted this was coming in January with his report called “US Economy Outlook 2026.”
To get Dowd’s latest red-hot reporting, go to his new Substack called “Ed Dowd: Beyond the Narrative,” by clicking here.
Tyler Durden Thu, 07/23/2026 - 11:10UK cops apologize for ‘missed opportunity’ in last year’s synagogue attack by ‘committed jihadist’
House passes Iran war powers resolution as four Republicans join Dems to rebuke Trump
Software Vendor Fires Back At NJ Governor Over Noncitizen Voting Scandal
New Jersey's noncitizen voter registration scandal has taken an uncomfortable turn for Gov. Mikie Sherrill, and the vendor she blamed for it is no longer taking the fall quietly.
IDEMIA, the French multinational that has worked with New Jersey's Motor Vehicle Commission for more than 40 years, is refusing to play the role assigned to it. What the company is now saying about who was responsible for approving registrations undercuts the governor's account.
A voter arrives at the Moorestown Township Fire Station to cast a ballot in the 2025 general election. (Emma Lee/WHYY)Sherrill revealed on Tuesday that more than 6,600 noncitizens ended up on New Jersey's voter rolls between June 2023 and June 2024, and that fewer than 400 of them cast ballots. The individuals answered "no" when asked on an MVC keypad whether they were U.S. citizens, she said, and "through no fault of their own, the system registered them anyway." New Jersey has roughly 6.6 million registered voters.
"Let me be clear: this entire situation is unacceptable," Sherrill said. "It's unacceptable that the vendor released software with such a glaring error, it's unacceptable that the MVC took a year to get this issue fixed and it's unacceptable that no one in the previous administration brought this to light, demanded accountability or took action when it happened years ago."
The previous administration was that of former Gov. Phil Murphy, also a Democrat.
IDEMIA told a different story. The company disputed the governor's characterization of its role, saying its software's function is limited to transmitting data from the MVC to New Jersey's Division of Elections, which the company says bears ultimate responsibility for verifying voter eligibility.
"IDEMIA works with the New Jersey Motor Vehicle Commission, and has for more than 40 years, to support the process through which eligible individuals may indicate their interest in registering to vote when applying for or renewing a driver's license or state-issued identification card," the company said in a statement. "IDEMIA's role is to transmit information through the motor vehicle system. The voter registration information is transmitted to the New Jersey Department of State, Division of Elections, which is ultimately responsible for verifying eligibility to vote. Information submitted by IDEMIA must still be validated and adjudicated by the Division of Elections."
Sherrill has said New Jersey will phase out the company's software regardless. She has also ordered the erroneous registrations removed, directed her chief counsel to investigate, and retained an outside firm, CSG Law, to conduct an independent review.
She simultaneously downplayed the severity of the situation and accused the Trump administration of trying to weaponize elections for political gain, saying the president has "zero credibility on the issue of election integrity."
The White House is all over it. "Democrats and their media allies have repeatedly said it is impossible for noncitizens to register to vote, let alone cast a ballot. Time and again, they have been proven wrong. As President Trump has said, there is nothing more important than the integrity of our elections," White House spokeswoman Abigail Jackson said. "And this latest incident underscores the absolute necessity of the SAVE America Act. American voters deserve to have confidence that our elections are safe and secure."
Feds Get InvolvedThe dispute is no longer confined to New Jersey. Assistant Attorney General Harmeet Dhillon of the Justice Department's Civil Rights Division has opened a federal investigation and demanded the state produce full names, dates of birth, nationalities, residential addresses, and registration dates and locations for the affected registrants, citing New Jersey's obligations under the Help America Vote Act and the National Voter Registration Act.
Running alongside it is a far larger and far less settled number. The Department of Homeland Security says it identified 19,497 New Jersey voter registrations where an individual's name, date of birth, address, and Social Security number matched federal records indicating the person is a noncitizen, and that a broader review suggests the figure could reach 35,152.
"Election security is national security," said DHS Secretary Markwayne Mullin. "As President Trump announced last night, DHS has identified over 250,000 potential non-citizens illegally registered to vote in just 4 U.S. states. Only Americans should be electing American leaders."
Tyler Durden Thu, 07/23/2026 - 10:50