Shares of Alternet Systems, Inc. (OTC Pink: ALYI) followed the EV sector's weakness lower last week but are investors taking gains too soon? Many investors say yes. In fact, with the recent announcement that the company has eliminated all of its debt, ALYI could be in its best position ever to accelerate its planned growth.
ALYI announced in February that its finance partner, RevoltTOKEN, agreed to eliminate all of its outstanding debt in conjunction with its planned purchase of the preferred block of control shares. Also in the announcement was the confirmation that the planned RevoltTOKEN ICO is imminent. Alternet has previously announced RevoltTOKEN's intent to purchase control of ALYI by acquiring the preferred block of shares currently owned by existing ALYI management. Many investors question the "sell the news" decline. And rightly so.
In addition to its debt being paid off, ALYI is also expecting to benefit from its plans to build an EV ecosystem that will position the company to target multiple market segments. In that multimedia presentation, ALYI discussed its partnerships, its diversified business segment opportunities, and how its ReVolt EV motorcycle can penetrate the potentially lucrative African boda-boda (motorcycle taxi) rideshare market.
Better still, ALYI has confirmed that after the successful ICO of its finance partner, RevoltTOKEN, the company will have upwards of $100 million in financing available to accelerate its comprehensive strategy to develop its EV ecosystem infrastructure.
And while some investors are taking risk off the table and driving share prices lower, the result could become a massive opportunity to catch ALYI shares at a lower level. Remember, too, that ALYI shares tend to follow the broader EV market's sentiment and as that market rebounds, expect ALYI to do the same. For comparison purposes, Tesla's (NASDAQ: TSLA) stock is lower by 23% from its February high.
Indeed, ALYI is not yet a Tesla. But, don't be too sure that its stylish EV ReVolt motorcycle won't earn its share of attention when it launches in Africa.
Fundamentals In Place For Growth
The decline in EV stocks is sector-wide and not unique to ALYI. Thus, with the company building on its fundamentals and strengthening its balance sheet, the stock is well-positioned to move higher once investors rotate back into the sector. Moreover, as the new administration moves forward with environmentally friendly initiatives, expect the EV sector to be a prime beneficiary of the news. ALYI included.
In fact, Alternet Systems is already creating value. Investors have learned that beyond the progress made to get its ReVolt EV bike to the market, it is advancing a comprehensive business plan and strategy that makes ALYI far more than only an EV motorcycle manufacturer. The project has Alternet benefiting from a stake in an entire EV ecosystem, where its partnerships and business agreements position ALYI to capitalize on multiple sector opportunities in a simultaneous fashion.
Undoubtedly, a successful ICO of RevoltTOKEN can fundamentally change ALYI overnight. Most important, it can put ALYI into a hyper-growth mode with funds to support multiple value-creating projects. Even before the ICO, though, those projects are already moving forward with funding from RevolTOKEN providing capital. The ICO, however, will be a game-changer for ALYI.
Video Link: https://www.youtube.com/embed/LJEW7v3bFa0
An EV Ecosystem Beyond its ReVolt EV Motorcycle
What needs to be made clear to investors is that ALYI plans to do considerably more than just making EV motorcycles. Thus, while its ReVolt EV motorcycle may provide a catalyst in the near term, more are likely to come throughout the year.
In fact, while there is potential for ALYI to become a profitable company from sales of its ReVolt motorbikes alone, the plan to create shareholder value is far more extensive. Beyond ReVolt, ALYI plans to leverage partnerships and monetize battery design, EV power stations, alternative vehicle design, and technical and mechanical support services. Those initiatives provide commercialization exposure to the entire sector with innovative products and services that could accelerate growth in the coming quarters. Incidentally, its ReVolt bike production is expected to begin in July of this year to meet an initial order of 2000 units. Thus, a revenue-generating milestone could be reached within five months.
On that measure alone, current valuations could be considered cheap. Better still, in the longer term, investors could benefit from ALYI's intent to monetize multiple opportunities through a diversified revenue-generating strategy. ALYI refers to its plan as a democratization of the EV industry, and it's a concept ALYI believes can help the entire sector.
Democratization Of The EV Industry
When addressing the EV industry's democratization, to ALYI, it means staying committed to creating an electric-vehicle ecosystem that can continuously introduce new electric vehicles, build supporting technology, and provide infrastructure components necessary to keep electric vehicle transportation moving. The concept targets opportunities throughout the emerging EV market and extends to electric vehicles designed to work on land, sea, or air.
The great news is that ALYI is already entrenched in the concept and has created accretive partnerships and working relationships to accelerate its positioning into the EV rideshare markets. Currently, its efforts are seizing opportunities specific to the massive African boda-boda (taxi) market that is in desperate need of innovative, cost-effective solutions to manage the surge in demand for public and private transportation.
A deal with iQSTEL Inc. (OTC: IQST) is expected to contribute to the cause. That deal is in place to capitalize on IQST's patented battery technologies to build a custom, proprietary long-range EV battery solution. Currently, the partnership is concentrating its EV battery development efforts on HD Thin Film Lithium Battery technologies. The innovation doesn't stop there.
ALYI is also advancing research and development programs to develop new battery technologies using hemp and nanomaterial-based batteries. It's an effort attracting a fair share of attention, not for its shock value, but from hemps growing reputation as a superior ingredient for use in industrial products. Investors should keep in mind that ALYI does not need to commercialize each product. Value can be created from licensing, partnerships, or a sale of the asset itself. Thus, if ALYI and its partners can earn patentable claims to its technologies, a decision to monetize those assets through alternative channels not only brings financial rewards but also eliminates production risk and saves capital.
ALYI and IQST are also advancing a state-of-the-art communications platform specific to EV markets. There, the two are working to develop a two-way device communication platform for its ReVolt motorcycle and future electric vehicles. The project leverages IQST's expertise in the sector by implementing software and communications technology that integrates geolocation, battery management, theft and accident interfacing with EMS, and remote maintenance management. Further, the system will support vehicle body and component leasing management, driver and passenger personal mobile interface, and a rideshare interface to benefit an expanding market. For ALYI, the technology can help them to build and maintain competitive advantages.
A Breakout Period In 2021
Although penny stock investors often micro-manage every tick of the tape, the longer-term growth potential clearly outweighs the near-term volatility. Low-priced stocks see violent percentage gains and losses, and, logically, investors pay more scrutiny to the violent swings. But, despite those moves, investors should always pay attention to fundamentals before following the herd. And as investors debate the merits and shortcomings of a company, the truth typically wins the long-term battle.
Undoubtedly, ALYI is embarking on an ambitious plan to create shareholder value. And the great news is that value can be built incrementally as different projects make their way to market. Clearly, a successful July production launch of its ReVolt EV motorbike will be a catalyst for the stock to move appreciatively higher. It could also quiet skeptics who often have an investment timeframe measured in minutes rather than quarters.
Development-stage companies like ALYI often have growing pains. But, those pains, whether they be exposed by financing issues or project delays, should not replace the long-term value proposition. Alternet Systems is a small company that is trying to do big things. The excellent news is that each project is moving forward and position the company to become a significant player in its targeted markets.
Still, consider investing in ALYI as a medium to long-term play. Thus, three rules can apply. First, follow the company's news. Second, allow ALYI the time to develop and set a long-term time horizon for returns. And, third, avoid the misinformation on chat boards from day traders whose motives are unclear. Follow that strategy for any growth stock, and the likelihood to have shares shaken loose from once strong hands could be the difference between owning and not owning shares in the next big thing.
Remember, Tesla opened at $17.00 in 2010, and every chat room has had its haters ever since...despite its more than 4000% gain.
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