If you’ve checked out any of the Outsider Club’s Chart Wars video series, you’re probably familiar with the way I introduce Christian DeHaemer: “we call him “Hammer” because he always nails it.”
I mean, when your last name already means “Hammer” in German, it’s a pretty obvious nickname. Still, just over a month ago, on May 5, Hammer recommended upstart drone company RedCat at $5.50 a share. This morning it hit a high of $9.49…
Yeah that’s nailing it.
Just about a year ago, Hammer posted a new trade for his Breakout Trader service on our company Slack:
Yesterday, Archer Aviation (ACHR) closed at $11.73. All-time highs came last month at $13.92. Either way you slice, that’s a triple-bagger – and not only that, the stock has tripled…
Yep – Hammer strikes again!
So if you check Archer’s stock price today you’ll see that the stock price is down 14% to around $10 and you might be asking: “What the heck Hammer?”
Glad you asked. And I’ll tell you: $10 is a good entry for Archer, here’s why…
Archer is an eVTOL company – electric vertical take-off and landing. Basically flying cars like Hammer said.
Archer has been selected as the official air-taxi provider for the 2028 Olympics in Los Angeles. I know, sounds crazy. But its eVTOLs are in testing now and it says it has completed 15% of the FAA approval process. Yes, there’s a ways to go…
So it was good news when, last Friday, President Trump signed an executive order intended to “unleash American drone dominance” and ordered the Transportation Department to help make eVTOL flying taxis a reality in the U.S…
But that’s not why the stock is down 14% today. Last night, after the markets closed, Archer announced it had completed a secondary offering of stock at $10 a share that raised $850 million…
Now normally, when a company announces a secondary offering, it’s a “shelf” offering. Investment banks take the offer to clients, a price is agreed upon (usually below current market level) and that sale price gets announced after a couple days…
Archer’s secondary offering was different. It was a direct sale at $10, meaning the clients were already lined up and all the stock sold in one fell swoop. $850 million worth…
This tells us there is strong demand for Archer stock. It also tells us that $10 is likely to be a floor for the share price – because those deep pockets will likely defend their $850 million investment if/when the stock trades back to $10.
It also tells us that Archer is flush with cash. That $850 million gives it nearly $2 billion in net cash to fund development. The market cap is just $5.4 billion, which means the company has 35% of its valuation in cash.
It may not be perfectly straight line, but Archer looks like it’s headed higher. Own it at $10 and who knows, maybe in 2028 your profits can fund a trip to the Olympics and get shuttled around on a flying taxi…
Right now, Hammer’s got a few Robo-Taxi stocks in his sights. He already recommended one to his American Stock Investor members at $1.05. It recently hit $1.72, and there’s almost certainly more to come…
You can get this stock, plus two more undiscovered gems in his latest Special Report “Three Robotaxi Superstocks Under $5 to Buy Today.” Here’s how:
Take Care,
Briton Ryle
Chief Investment Strategist
Outsider Club
X/Twitter:https://twitter.com/BritonRyle
