January 26, 2022 -- InvestorsHub NewsWire -- via Hawk Point
Media --
Alternet Systems, Inc. (OTC:ALYI)
has big plans for 2022. And investors may want to pay attention.
Better yet, investment consideration is warranted, especially with
ALYI laying the groundwork for a potentially transformative year.
The building of that infrastructure has been no secret. In fact,
how it intends to complete that transformation comes from the
company itself. And while its plans may have been slowed by
enormous pandemic-related headwinds, it’s fair to say that ALYI is
far from stopped, especially after reading its progress updates.
Not only that, several near-term milestones, including an expected
$2 million in revenues for 2021, make ALYI stock more than an
attractive value proposition; it makes it a compelling
one.
Remember, ALYI traded as high as $0.20 in 2021. So, the stock
has shown that it has tremendous ability to surge when the company
delivers on its intentions. However, the better news is that
Alternet is better positioned today, both operationally and
financially, than they were during that massive surge higher. Thus,
at about $0.01 a share, ALYI stock may be the most undervalued in
its history.
Still, things can change quickly, and the company has been
overtly transparent to show why that may happen faster than many
expect.
Seizing Massive Opportunities In EV
Sector
The engine behind that expected growth results from deals made
in 2020 and 2021 that have changed ALYI from an ambitious company
to one with financial interests and leverage. In fact,
infrastructure created in the past and the present combine to
present a near-term future filled with opportunities to transform
this tiny niche-focused EV player into a revenue-generating
juggernaut.
Will that happen overnight? No. But, milestones reached along
the way tend to have an innate ability to turn into catalysts.
Thus, even incremental steps on a journey back to ATH’s is a value
proposition of its own. Not only that, ALYI is in the right markets
at the right time. And despite stocks in every sector getting
hammered down in recent weeks, sticking with the stocks in the
industries “that matter” typically provides the means to outperform
markets when the bulls return. The EV sector will undoubtedly be a
leader, and weakness now is opportunity exposed.
Alternet Systems showed it has no problems following the sector
leaders higher. As it was then and likely in the future, investment
dollars pouring into a hot sector has a way of lifting all sector
stocks higher. That was the case in 2021 when many EV stocks surged
in lockstep with their large-cap industry brethren. Remember, too.
While ALYI stock is lower, so are the leaders. Tesla’s (NASDAQ:TSLA)
stock is down by more than 20% compared to a month ago. But, if you
think investors are bailing on the stock, think again.
Market weakness in stocks like TSLA is often the result of fund
redemptions shaking shares from weaker hands. But, stronger hands
are always there to take the other side of the trade. Moreover,
those who buy on weakness tend to outperform the averages
significantly, with gains pushed higher by remorseful sellers
chasing the stock after the bulls return.
In the case of Alternet Systems, that’s likely to happen, too.
In fact, for all intents and purposes, shares should have breached
that $0.20 ATH months ago, considering that even a cursory sum of
its parts calculation justifies significantly more value than its
current market cap shows.
While growing pains and dilution can contribute to weakening
share prices, keep in mind that it’s part of the reason companies
go public. Having treasury shares to raise money to accelerate
growth, while dilutive to a market cap short term, can return 100X
that amount over a longer time.
Besides TSLA, Nio (NYSE:NIO)
is a perfect example. Going back to its prospectus and IPO,
investors can see a pattern of dilution that triggered immediate
disgruntled sentiment but left long-term holders the better after
the capital raised was put to good work. Those returns aren’t seen
overnight, but they are included in forward-looking revenue models
that often have analysts revising forecasts. If management spends
its shares appropriately, models generally move estimates
higher.
That’s the likely case for ALYI. Like every growth company, they
have used shares to accelerate near and long-term growth. Being
caught in a market storm doesn’t mean the results won’t come as
expected. They likely will, and investors should recognize that
short-term pain can and often does lead to long-term gains. Thus,
the apparent disconnect between share price and intrinsic value at
ALYI may be short-lived.
Transitioning From Ambitious To
Revenue-Generating
As noted, closing that gap is a big part of ALYI’s mission.
Moreover, they have been transparent in showing how that’s
possible. And in a number of ways, the ALYI story is not unlike
other micro-caps breaking into new markets. It takes time, a
measured amount of discipline, and in many cases, a compliant
market to drive shareholder value higher. When those things
combine, a perfect storm of opportunity is born. That’s where ALYI
stands today.
But different from other micro-caps that target more than they
can process, ALYI is targeting niche opportunities that may be too
small for the EV behemoths to target. That doesn’t mean the
opportunities are not substantial. It means that smaller and more
agile companies have a way to penetrate emerging markets on a more
favorable cost basis. Thus, where a hundred million dollar combined
market opportunity may be too small for the large caps who feast on
billion-dollar market opportunities, for companies like ALYI, it’s
right in their wheelhouse.
In addition, to earn their place faster, they are willing to
share the presumptive prize. ALYI partnered with more experienced
companies to expedite growth and diversify its market
opportunities. Part of that mission has them combining expertise
with companies like iQSTEL (NASDAQ:IQST)
to leverage their strength and extend the technological reach into
different EV markets. To date, that relationship is generating
potentially enormous near and long-term benefits, with the team
nearing completion of advanced prototype EV batteries,
communications systems, and innovative solutions to power vehicles
more effectively and efficiently.
So far, so good. But there’s more to like. While that deal was
taking root, ALYI seized on additional opportunities to generate
multiple times the revenues from only EV battery and communications
products. That helped ALYI evolve from a one or two product company
into one taking advantage of a rapidly developing EV ecosystem that
needed far more than just a few niche products and services to
complete a more integrated EV industry.
To move that needle forward, ALYI implemented a plan to
creatively tap into off-balance sheet resources to fortify a
business plan with the capital needed to penetrate an industry that
was/is exploding in size. The results- ALYI has reached several
critical milestones.
Milestones With Catalyst Expectations
Of course, the mission now is to transform those milestones into
catalysts. That appears to be happening. In 2021, ALYI’s focus to
embed itself into the broader EV ecosystem resulted in its
transition from concept-stage into a company holding impressive
tangible assets.
It’s an important change in that it immediately positions ALYI
to benefit from its contributing essential assets and services to a
much larger EV sector reality. In 2021, ALYI announced that key
contracts have been executed, innovative products are being
produced, and revenue is being generated. Good revenues, too.
Expectations are for income to eclipse the $2 million level when
reporting year-end 2021 results. Hitting that expectation, going
from $0 to $2 million, will be more than an impressive
accomplishment; it would be a game-changer for the company going
forward. Cash, after all, is the lifeblood of any
company.
But here’s the better news. Revenues are expected to surge in
2022, with a stretch goal of up to $50 million after ALYI releases
its innovative ReVolt Electric motorcycle to capitalize and
maximize opportunities in the flourishing African boda-boda
(motorcycle taxi) market. Updates show its design and function can
be a game-changer in the densely populated markets they serve. And
beyond agile and affordable, they are perfectly aligned with a plan
to eliminate combustible engines within the next few decades.
That’s important as well.
But, remember, ALYI isn’t only a products company. While the EV
battery and ReVolt motorcycle may be considerable value drivers,
ALYI is further committed to monetizing its plan to take market
advantage of a perpetual circle of opportunities fueled by an
ecosystem of providers and consumers. That means that instead of
identifying itself as a single products based company, ALYI’s
mission includes building a network of EV providers and consumers
under a single brand name recognized for innovation, cooperative
excellence, and a commitment to socially responsible
goals.
That part of its mission is moving forward, too. In 2021, ALYI
entered into several deals to broaden its consumer reach. Those
agreements established ALYI’s first EV provider and consumer
satellites in an ecosystem orbit. More simply, the arrangements
provide ALYI the brand traction needed to build business faster and
efficiently.
Right Products, Right Markets
Results are showing, and ALYI continues to show investors it
offers quite a value proposition by hitting the right markets with
the right products at the right time. Still, they note that while
the opportunities in Africa are enormous, it’s only a proving
ground before moving to other under-served markets. The potential
is substantial, with expectations for the African economy to become
a $5.6 trillion market by 2025. Moreover, while Africa accounts for
around 17% of the world’s population, it contributes only about 3%
of global GDP. That gap exposes the opportunities that ALYI is
seizing.
Part of the reason ALYI thinks it can be an influential player
in that region is that its EV ecosystem advances environmental
sustainability and economic growth in Africa, both vital components
of political and economic global stability. Moreover, they expect
to benefit from the largely untapped economic opportunity in Africa
and the opportunity that comes with building an international brand
name. That plan includes delivering two different electric
motorcycle models to the Kenyan market.
In addition to its flagship ReVolt motorcycle, ALYI is expanding
its interests to deliver components to locally assemble
three-wheeled electric Bajas in Ethiopia, which are also going into
service in the local taxi and delivery markets. Sales of those
units will contribute to ALYI meeting its $2 million goals in 2021.
But, as noted, ALYI is focused on a bigger prize in 2022, supported
by the launch of additional sources of EV ecosystem revenue to
reach a stretch revenue goal of $50 million.
If they post the revenues, penny-a-share levels will be extinct.
Moreover, with spiking revenue comes less dilution. Thus, ALYI
investors could see a surge in shareholder value over the next 3-12
months, especially if updates confirm ALYI is delivering on its
forecasts.
Pieces In Place For 2022 Breakout
The excellent news- that’s likely based on what the company is
doing. ALYI made it clear they intend to generate value through
several initiatives, including an annual EV ecosystem symposium
staged around a globally recognized EV race event. The event is
planned to be a global focus offering participants the chance to
demonstrate their areas of excellence to a watching world. Bringing
that event closer, ALYI is working with a Kenyan race event
coordinator, East African Grand Prix (EAGP), a company in which
ALYI has been an investor.
Notably, before the onset of COVID, EAGP entered into a
provisional licensing agreement with Formula E to bring an annual
race to Nairobi. And while the process slowed, it hasn’t stopped.
The feasibility study to verify a race could be conducted and
aligned with Formula E’s strict standards has been completed to its
satisfaction. That resulted in ALYI, EAGP, and Formula E meeting at
Formula E’s headquarters in London before the holidays to organize
the prospective Nairobi Formula E event.
Other partnerships can drive value as well. ALYI is leveraging
value-creating deals with Waterpure International, Inc.
(OTC:WPUR),
adding sustainable EV charging solutions, Priority Aviation, Inc.
(OTC:PJET),
adding EV market expansion opportunity, and, as noted, iQSTEL, Inc.
(OTCQX:IQST),
contributing vital EV technologies. All contribute to validating
ALYI’s plan to become a more prominent company faster than many
expect.
And while those can add considerable shareholder value targeting
different markets, a potentially massive windfall from its
investment in car-sharing technology company Zoomcar Inc. is also
in the crosshairs. The Zoomcar IPO, expected later this year, can
add considerable value to the ALYI EV ecosystem and provide a
substantial boost to the ALYI balance sheet if the Zoomcar IPO
earns the valuation expected. Indicators are for it to be
well-received.
And finally, ALYI investors could benefit from the company’s
relationship with ReVOLT Token. That security coin is committing to
fund parts of ALYI’s expansion, provide working capital, and allow
the company to take a more ambitious approach in its acquisition
strategy. While that project, independent of ALYI, has taken longer
than expected to market, listing Revolt Token on an exchange is
said to be imminent.
Thus, at current prices, and off its 52-week high of $0.20,
there’s a lot to like about Alternet Systems. In fact, taking just
parts of its expanding asset portfolio justifies a big move higher
in share price. However, combining the accretive power of all,
re-claiming all-time highs is not out of the question. So, while a
perfect storm of broader market weakness took shares lower, the
ensuing calm can do just the opposite. Hence, opportunities today
can become windfalls tomorrow.
Don’t underestimate the potential built into Alternet
Systems.
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