Alternet Systems, Inc. (OTC Pink: 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 Pink: WPUR), adding sustainable EV charging solutions, Priority Aviation, Inc. (OTC Pink: 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.
Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Media strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. For some content, Hawk Point Media, its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. Hawk Point Media was compensated up to three-thousand-five hundred dollars by a third-party to research, prepare, and syndicate written and visual content about Alternet Systems, Inc. for a one-month period. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Company Name: Hawk Point Media
Contact Person: Ken Kellis
City: Miami Beach
Country: United States