Unusual Machines (UMAC +0.68%) stock had a five-day trading stretch that was unusual in a good way. Encouraged by very bullish comments from the drone component maker's leader, investors piled into the stock, sending it up by double digits. Over the course of the week, according to data compiled by S&P Global Market Intelligence, Unusual Machines' stock ballooned more than 15% higher in price.
Talk isn't cheap
On Tuesday, White Diamond Research conducted an interview with Unusual Machines CEO Allan Evans. In the conversation, Evans repeatedly emphasized that the company's wares are in extremely high demand, not least because of the two leading wars in the world. But even if those were to end, the company would still be operating at a high pitch.
Image source: Getty Images.
"We're running max rate," Evans said. "We don't have any of our parts in stock. We are scaling as fast as we can. War in Ukraine, war in Iran, starting or stopping won't have a positive or negative effect on our revenue for the next 18 months because we're scaling as fast as possible."
The CEO added, "So you can assume infinite demand for the next 18 months as we scale as fast as we can."
It's rare that a company's leader speaks of "infinite demand" for its goods. That small remark alone garnered significant attention for Unusual Machines.
NYSEMKT: UMAC
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Welcome to the future
One of the jobs of a CEO is to talk up his or her business, so we can frequently take their utterances with a grain, or even pinch, of salt. This is one of the rare cases where a leader's lofty words actually match reality.
Drones are the future of warfare, as we've witnessed in the Ukraine conflict, and Unusual Machines has already proven to be a solid, reliable supplier of necessary parts for such craft. I don't blame investors at all for leaping on the stock in the wake of Evans' remarks; in fact, I'd expect it to lift even higher before long.
