NASCAR in the Air: Drone Racing is the New Rage

by Tom Kelly | Wednesday, Jul 27, 2016 | 984 views

The roots of NASCAR began during the prohibition era, which spawned bootlegging, and thusly, the huge sport of NASCAR we know today.  Country boys from the South punched the gas and outran the cops using pure speed.  The same new frontier is taking hold in Drone Racing as ESPN is now covering the Drone Nationals and a derivative industry is born around a product intended to deliver packages and take aerial shots of cornfields.

We have been looking at Vertitek Racing who has its Team of Sponsored Pilots promoting the Vertitek brand on YouTube, and attending racing events as a branded team. One of the Vertitek team members has now qualified for the upcoming U.S. Drone Nationals, the first-ever such event to be nationally televised live on ESPN, August 5th through August 7th.

Vertitek looks to be the Joe Gibbs of team ownership and no doubt has some Jeff Gordons and Tony Stewarts in the world of Drone Racing, I can’t wait to watch!!!. The roots of Vertitek is in parent company Valmie Resources (VMRI) who is a publicly traded company where Vertitek acts as the wholly owned subsidiary, and they are clearly positioning themselves for the growth of the industry as the sole manufacturer of these products. It is an excellent branding play similar to what the Auto Industry does with NASCAR sponsoring teams and owners who display their products.  I suspect it will be a combo of precision and sheer speed for these teams.

The U.S. Drone Nationals announced its inaugural racing season in January. The league anticipates becoming the Formula One, NASCAR and MotoGP of drone racing and has secured millions of dollars in backing from venture capital firms and celebrities to make that a reality. According to Quartz, a digital global business news publication, first-person view drone videos are racking up millions of views online, indicating that a high level of interest may be growing within the general public, and logically pulls the valuable millennial demographic.

Valmie Resources (VMRI), the company that just recently acquired Vertitek, focuses on providing unmanned aerial vehicle software, hardware, and cloud services for commercial applications worldwide. The company offers aerial data collection hardware, software, and data storage solutions. It has developed an Autonomous Intelligence for Mobilized Devices (AIMD) Platform as the intersection point for real-time operational intelligence and workflow accessibility anywhere and anytime; and AIMDx enables clients to connect, communicate, and collaborate within a cloud-based network. The company is also developing V-1 Drone, a multi-rotor unmanned aerial vehicle. Valmie Resources, Inc. was founded in 2011 and is based in Houston, Texas.

The stock has done pretty well in 2016 and is looking to incorporate this new multiple for the new industry.  Below you can see the 7x move in shares with strong volume.

VMRI2

Shares in Valmie (VMRI) have had a great year trading around $1.65 at time of this writing about a 7x increase since January, and they were even higher that these levels having tested the $2.65, which is a huge move since this story started to get traction. The company has a market cap of over $100 million and has come a long way in 2016. What a cool new industry combined with a sporting component that makes Drone Racing look like the new NASCAR in the air!  I Love It!!!! I want a Hat!!

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Disclosure: We have no position in VMRI and have not been compensated for this article.

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