Alternet Systems Positions For Breakout 2021;
Development And Commercialization Plans Accelerate For Its ReVOLT
Motorcycle In Africa Markets
December 23, 20202 -- InvestorsHub NewsWire -- via digitaljournal.com --
Alternet Systems, Inc. (OTC
PINK: ALYI) is
earning investor attention as they transform from a development
stage company into a diversified provider of alternative energy
storage solutions with plans to commercialize its proprietary
technologies within the electric vehicle sector.
ALYI is already staking a claim in a significant EV market. And
while Tesla continues to earn the majority share of industry news,
sector-specific investors often focus on derivative opportunities
that target more specialized demands. Alternet Systems is working
hard to attract their interest.
In fact, ALYI is already showing investors that it can find and
exploit under-the-radar opportunities. Specifically, ALYI targets a
potentially lucrative market by focusing on the Sub Saharan
ride-share market, a relatively untapped market that is a prime
candidate to benefit from the advantages offered by an
electric-powered sidecar motorcycle. And by filling niches in a
billion-dollar market, companies often face fewer competitive
headwinds. That's the goal of ALYI; to become the leader in its
respective markets by offering customers the products and services
that they know best. And they are making the right choices by
targeting the vast EV markets.
Moreover, with electric vehicles continuing to strengthen their
appeal as a future and environmentally conscious means of
transportation, ALYI's plans to deliver a high functioning and
economical solution to a specialized portion of this market is not
only timely but can be extremely rewarding through the
commercialization of its innovative motorcycle and battery
technology. Here's how.
Optimizing Ride-Sharing
To earn its piece of the burgeoning EV industry, ALYI stays
focused on developing innovative applications for electric vehicles
and batteries within the African ride-sharing market. The market is
unique and fits precisely into ALYI's product and business focus.
In fact, in a December 18, 2020 release, ALYI said it has already
signed orders for its electric motorcycle explicitly designed to
serve the African taxi (Boda boda) market in East Africa.
Production is expected to begin in 2021.
The business plan is taking swift advantage of the differences
in the African markets. Unlike other parts of the world,
ride-sharing services using passenger-vehicles are far less
prevalent. Rather than using cars, these markets inspire their own
popular ride-share transportation method through specialized
motorcycle taxis, or "Boda bodas."
The market is not new, and multiple local startups are actively
trying to leverage space in the market. Even ride-sharing giant
Uber is operating its own e-boda service in limited countries. To
date, it's estimated that Uber has over 2 million registered users
in Africa, coupled with more than 29,000 drivers. The numbers are
not only big, but they also expose the huge demand available to
suitably focused companies. And for well-managed, well-financed,
and innovative companies, there is more than enough business to
generate substantial revenues even in a competitive landscape. For
ALYI, they believe that a more localized approach to earning market
share could generate potential windfalls from a loyalty driven
presence.
Beating The Trends
The key to success is to define and stay ahead of the trends.
ALYI understands that fact as much as any company. Thus, management
has been on-point to develop and implement its plan to bring
industry-leading solutions to the African ride-sharing market. They
are further confident its approach to secure a large share of the
e-bike market will enable them to become a preferred provider of
motorcycle taxis in their respective markets. While their ambitions
are bold, they have done their legwork.
The company has done vast due-diligence to understand the
intricacies of their targeted markets and create designs based on
specific specifications and preferred equipment already being used.
They even utilize data from the China market to maintain what they
believe will be a competitive advantage over other providers. Their
extensive research led to its design of their first electric
vehicle, the proprietary ReVolt Electric Motorcycle, a fully
electric motorcycle based on the famous BMW R71. That bike is a
great role model.
The R71 has a rich history dating back to the 1930s, and
modified blueprints of its design have resulted in a nearly
ubiquitous motorcycle taxi in China, the Chang Jiang CJ750. In
areas where these bikes are commonly manufactured, they are
preferred by many ride-share drivers due to their cost, strength in
rugged terrain, availability of replacement parts, and relatively
large seating capacity. Those attributes helped develop ALYI's
innovative designs.
But more than just capitalizing on the familiarity and longtime
appreciation of the bike's design, ALYI has created their spin on
the motorcycle with ReVolt. This ingenious design replaces the
combustion engine with an engine that is charged and powered by
electricity. The ReVolt will sport two saddle seats and be equipped
with a sidecar, and the conversion from fuel to electricity-powered
operations allows the bike to pack a substantial battery capacity
powered by Alternet Systems' lithium battery solution. ALYI is not
entirely neglecting its competition. They see an opportunity there
as well.
The company is offering a conversion kit that can fully convert
an existing gas-powered BMW R71 or CJ750 into full electric,
offering those who already use the bike for ride-sharing purposes
the opportunity to enjoy reduced fuel costs and reliable power.
Thus, they can earn revenues through multiple and diverse
streams.
ALYI's Revolt bike has made its way through the development
stage, and word that an affordable electric motorcycle taxi with
widely available replacement parts is spreading quickly among the
African ride-share industry. Gossip has its rewards, and ALYI has
since confirmed the receipt of 2000 orders in Kenya and is
currently working to finalize plans to create a manufacturing
facility for full-time production of its ReVolt motorcycle to meet
this demand.
Market Opportunity Is Growing
Notably, it's an ideal time for ALYI to be nearing the
commercialization of its battery and electric vehicle development
programs. The market is substantial now, but it is expected to
expand significantly in the coming years. Estimates expect the
worldwide fuel cell electric vehicle market to become a $9 billion
opportunity by 2024, with e-bikes accounting for nearly 25% of the
product mix.
Thus, despite ALYI entering a competitive landscape, their
strategy focuses on a less-crowded segment that can still deliver
robust revenues and growth in the coming years. They also can do
well by positioning themselves in an e-bike market that will remain
an essential part of the industry. In some markets, the growth
could be exponential because of crowding, environmental causes, and
certain logistical situations that make an e-bike the preferred
vehicle for e-boda services. Therefore, not only is ALYI ideally
positioned to benefit from a significant e-bike market, but their
strategic decision of electrifying and improving a gasoline
motorcycle can contribute substantially to its growth as competing
companies may be forced to adapt to potentially new and restrictive
regulations.
Now, with the production of the ReVolt electric motorcycle in
progress, ALYI can shift some of its focus to other areas to create
and maximize shareholder value. Like its retooling of existing
gas-powered bikes, the company thinks it can create value by taking
advantage of other accretive opportunities by developing additional
innovative electric solutions. They are also capitalizing on unique
capital raising opportunities.
One strategy may be to spin-off subsidiary assets such as ReVolt
through a Reg A+ public offerings. This method of raising capital
is becoming popular and can not only help deliver fresh capital,
but can also reward its shareholder base by providing a dividend of
interest by monetizing non-core assets. It's a unique strategy that
provides cash but also keeps ALYI in control.
In most straightforward and best terms, taking that direction
would allow ALYI to remain as the holding company of important IP
assets and allow its subsidiaries to focus intently on their
specific niche market within the company. The excellent news for
ALYI shareholders is that they can earn dividends from the
subsidiary spin-offs and still inure gains from the direct stock
ownership.
Looking Ahead For A 2021 Breakout
Alternet System's work during 2020 has set them up well for a
potential breakout year in 2021. In particular, ALYI's progress of
penetrating the African ride-share market has placed them in a
prime position to capitalize on the planned commercialization of
its ReVolt electric motorcycle taxi. But, this is only one area of
focus for the company.
As noted, ALYI has long been entrenched in battery and energy
storage research. That expertise, especially alongside the focus on
lithium-ion solutions, the team plans to leverage its work to
develop innovative power solutions using graphene, fuel cells,
solar, photosynthesis, and other developing alternative solutions.
The better news is that its research fits well with its next
generation of planned products, an electric-powered delivery truck
designed for the Sub Saharan market.
Clearly, the technology is next-generation, and investors should
understand that while short-term revenue-generating opportunities
may be near, it's the long-term value that can deliver the ultimate
prize. To reach that point, management has noted their intent to
target several markets, and with their military experience, is
eyeing specific opportunities generated by military
applications.
As a point of interest, management has already worked
professionally with several military vendors. And although these
vendors may not be especially well-known to the general public, the
company believes that they could offer substantial business
development opportunities by recognizing the company's current
product pipeline. On the battery side alone, the United States
military has been estimated to spend over $100 million a year, and
demand that these batteries perform in rugged conditions and remain
powerful and easily transportable. Notably, the US military is one
of the largest military exporters in the world, and if ALYI can
leverage its connections, it could deliver exponential growth for
that business segment.
Thus, it would be shortsighted to assume that ALYI is only
focused on its massive opportunity in the electric vehicle and
African ride-share market. The reality more aligns with the fact
that ALYI management has spent years developing business
relationships across multiple continents and countries. That
experience creates value by allowing ALYI to focus on cultural
variables where understanding how specific markets function can be
the difference between success and failure.
Success comes from a sum of the parts, and the ALYI equation is
making a great deal of sense of current values. Targeting a massive
e-bike market opportunity in Africa, leveraging its expertise in
battery technology to create additional channels for revenue, and a
plan to retool potentially thousands of gas-powered bikes in the
near term exposes what many believe is a valuation
disconnect.
In that case, the good news is that stock valuations tend to
react sharply to positive news. And with several potential
catalysts lined up for possible announcement in early 2021, that
disconnect creates current opportunities. The recent spike in
volume may show that investors are positioning ahead of a move
higher.
Source - http://www.digitaljournal.com/pr/4922938
Other EV movers include -
BLNK, NIO,
and
KNDI
NIO (NYSE:NIO)
Historical Stock Chart
From Aug 2024 to Sep 2024
NIO (NYSE:NIO)
Historical Stock Chart
From Sep 2023 to Sep 2024