When markets are weak, investors’ best strategy is finding and investing in companies that do things differently. That’s not to say that cost-averaging down in some beaten-down stocks isn’t a wise consideration; it can be. But, instead of staying exposed to the same companies at lower prices, another and sometimes better strategy to accelerate gains out of a bear market is to invest in companies that are doing the right things in the right sectors at the right time. Alternet Systems, Inc. (OTC Pink: ALYI), a nano-cap stock focused on monetizing massive opportunities within the EV ecosystem, makes that list.
Alternet Systems is no new kid on the block. In fact, the company earned significant attention last year after announcing a comprehensive plan to penetrate the relatively untapped African boda-boda motorcycle taxi market. Investors responded well by sending shares to a 52-week high of $0.22 per share. Then, COVID came. And not unlike thousands of other stocks, large and small, ALYI felt the pressure and effects of supply chain issues, business closures, and an inability to source products to keep pace with its fast-moving initiatives. Thus, while the stock is considerably lower on a comparison basis, it’s fair to note the move lower isn’t company-specific. It results from the most unprecedented and disruptive times in global business history.
But the good news- the times are changing. Global business is ramping, supply chain issues are getting fixed, and demand for products is growing so fast that even inflation is rearing its ugly head. While the inflation news is terrible, keep in mind that it primarily affects companies looking to borrow money. ALYI doesn’t intend to. And, yes, the cost of goods can be an issue for manufacturers. But again, ALYI took steps in 2021 to mitigate that risk by engaging in partnerships and business agreements that should alleviate near and long-term growing pains from a COGS perspective.
This, with its foundation laid and a 2022 business plan that is about as ambitious as they come, Alternet Systems is a company worthy of attention. And at current levels, investment consideration is warranted.
Revenues Expected To Surge
Moreover, it’s timely. In addition to several expected updates that could turn milestones reached into catalysts, getting ahead of its announcement that it booked $2 million in revenues in 2021 could allow investors to capitalize on a share price that has entirely decoupled from its intrinsic asset portfolio. In fact, $2 million in revenues is not priced into the stock. Instead, some investors are playing a game of show and tell. That’s okay. Investors have a right to be cautious in these markets. But, caution for some has kept the value opportunity in play. Not only that, if the actual posting of $2 million in revenues is the fuse to ignite a rally, it’s likely to happen in the next few weeks.
How big of an influence could hitting that forecast be on the share price? Well, considering that ALYI is much better positioned for growth today and with revenue support, targeting that $0.22 level, 2100% higher than today, would undoubtedly be in the cards. Don’t underestimate that being the case. Deals made in 2020 and 2021 transformed ALYI from an ambitious company to one with revenue-generating financial interests and growing EV industry leverage in the African EV markets. Better yet, while its international interests are impressive, work over the past year has broadened the company’s business reach, putting revenue-generating opportunities in the United States in play as well. Partnerships with WaterPure (OTC Pink: WPUR), iQSTEL, Inc. (OTC: IQST), and Priority Aviation (OTC Pink: PJET) have each helped ALYI to carve out niche market opportunities that can enhance an already exploding revenue stream.
While a rocket shot to ATH’s may not happen overnight, catching the incremental moves along the way could each have their own inherent triple-digit percentage gains. Thus, in addition to ALYI being in the right markets at the right time, its share price is more than attractive to new investment; it’s compelling.
Strength In The EV Sector, Share Price Can Lag
Remember, too, Alternet Systems does have a way of following the sector leaders. During Tesla’s (NASDAQ: TSLA) surge in value, ALYI followed in relative lockstep. Now, as that behemoth finds itself lower by 33% since its January highs, ALYI is not immune from some of the carnage. However, don’t think savvy investors aren’t scooping up TSLA shares; they are. And beyond pointed headlines that support a particular position, the reality check is that TSLA is performing at best-ever operating levels. Thus, a similar scenario exists- share price weakness, especially in the face of excellent performance, exposes investment opportunities.
That appears to be the case with ALYI stock. And the more excellent news is that ALYI is fully transparent about how it intends to close the current valuation gap. Perhaps the better news, and a contributor to making that happen, is that the EV market is one sector that investors can’t ignore. Thus, while redemption can hide the underlying strength in a particular industry, the most probable event is that when bulls return, those stocks will get chased higher quickly. ALYI included.
And keep in mind ALYI targets niche opportunities that may be too small for the EV behemoths to target. That doesn’t mean the opportunities are not substantial; it suggests that opportunities that generate a maximum of $1 billion may be simply too small for mega-companies to address. It’s always more challenging and takes longer to turn a big ship. But for smaller and more agile companies like ALYI, those markets can be an ideal target. That’s likely why Alternet has several in its crosshairs.
Also, it’s important to note that mission is diversified. Moreover, they are willing to share the prize, partnering with more experienced companies to expedite growth and penetrate its targeted markets. Its partnership with iQSTEL, for instance, has the two leveraging combined strength and extending 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.
That’s only one partnership, though. To accelerate growth in multiple directions, ALYI capitalized on an aggressive business plan by tapping into off-balance sheet resources to penetrate an industry that was/is exploding in size. The results- partnerships that can allow ALYI to reach critical milestones faster than many expect.
Turning Milestones Into Catalysts
Of course, the ultimate result is to have milestones turn into catalysts, which 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 unique tangible assets. Last year, ALYI announced that crucial contracts have been executed, innovative products are being produced, and revenue is being generated. As noted, good revenues, too. Expectations are for income to eclipse the $2 million level when reporting year-end 2021 results. But here’s the more attractive proposition. 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.
Still, it’s important to remember that 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.
Considerable advances in that effort happened last year as well. ALYI announced entering into several deals to broaden its consumer reach, establishing its first EV provider and consumer satellites in an ecosystem orbit. More simply, the arrangements provide ALYI the brand traction needed to accelerate market penetration and facilitate business faster and more efficiently.
An Ambitious Plan In Motion
If all goes as intended, 2022 can be the breakout year. Undoubtedly, ALYI wants to make that happen, and several initiatives, including an annual EV ecosystem symposium staged around a globally recognized EV race event, could expedite that intent. 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.
Other partnerships can drive value as well. To reach its stretch revenue goal, ALYI plans to leverage value-creating deals with WaterPure International, Inc. adding sustainable EV charging solutions, Priority Aviation, Inc., adding EV market expansion opportunity, and, as noted, iQSTEL, Inc. contributing vital EV technologies. Notably, while diversified, it’s an accretive approach to business on a revenue-generating front. Moreover, the combination of deals validates ALYI’s plan to become a more prominent company faster than many expect.
Here’s a side note. In addition to those partnerships adding potentially exponential value to the ALYI portfolio, a potentially massive windfall from its investment in car-sharing technology company Zoomcar Inc. shouldn’t go unnoticed. Moreover, don’t undervalue the potential contribution to ALYI. The Zoomcar IPO, expected later this year, can add considerable value to the ALYI balance sheet if the Zoomcar IPO earns the valuation expected. Indicators are for it to be well-received.
And finally, ALYI’s relationship with ReVOLT Token is still a value kicker. 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, taking a sum of its parts approach to a valuation, at current prices, the ALYI disconnect between assets and share price is getting too big to ignore. In fact, single pieces of its asset portfolio can justify a multiple higher than its current stock price. Still, the right way to determine a more appropriate valuation is to include all its assets, a little bit of blue sky, and its position in a market sector expected to explode higher in value over the next decade. With Alternet Systems checking off the right boxes at the right time and with a perfect storm of opportunities ahead, a breakout period of growth in 2022 is more than expected; it’s likely.
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