Shares of Alternet Systems (OTC Pink: ALYI) are trading higher by roughly 20% compared to where they finished 2020 just a week ago. Investors are responding to several company updates from December that detailed an ambitious plan that can add meaningful revenues to the company over the next few months. Better still, it’s an action plan that is already in motion. And as that plan hits near-term milestones, it’s expected that its market cap will respond accordingly. Here’s why:
Unlike peer nano-cap companies with little beyond a business plan to offer, ALYI is instead leveraging more than three years of research and development to bring its flagship EV product, the ReVolt EV motorbike, to market. The launch’s timing, coupled with early demand for the cycle, is accelerating expectations for how quickly the company can transform from an R&D company into a revenue-generating business. The consensus is building that revenues can start during early 2021. Market conditions support that premise.
In fact, meeting an early 2021 production target for its sleek ReVolt motorbike coincides well with a recent research report by Morgan Stanley suggesting that EV sales will surge by 50% in 2021. Extending beyond 2021, the numbers get more impressive, with estimates that EV sales will surpass 54 million units by 2025. Adding emerging global markets to the mix may cause those 2025 estimates to increase substantially.
And while those lofty estimates play to Alternet Systems strength, it’s only one part of the equation. The other contributor to success is expected to come from ALYI’s focus on the surging African ride-share market, where its ReVolt motorcycle can be the perfect tool for the densely populated areas. In fact, ride-share service giant Uber is already blazing a trail in this emerging ride-share market and has attracted more than 29,000 motorcycle (boda-boda) drivers targeting more than two million service users.
But with Uber being a service provider, the market still requires a viable company to supply a durable, rugged, and affordable transportation option. ReVolt’s stylish EV solution can fill that need.
Riding Uber’s Tailwind
Uber obviously recognized the potential in the African ride-share markets. But, as a service provider, they have simultaneously created tremendous opportunities for companies to fill the need for reliable equipment. Alternet Systems believes they can answer that call.
In fact, their plans are already in motion. In December, ALYI announced that it has received significant pre-order purchase interest for its flagship ReVolt electric motorcycle. The attraction comes as a growing number of market observers and analysts suggest that the bike is perfectly designed to serve the African taxi (Boda boda) market in East Africa. As noted, production is expected to begin in the early part of 2021 and could deliver the first of several potential catalysts in the year.
Moreover, with investors paying greater attention to Alternet System’s potential, a second ALYI milestone can be monetized by exceeding the already high demand for its ReVolt EV. Notably, ALYI announced that pre-orders for the bike have already reached roughly 2000 units by the end of 2020. That’s impressive. But it gets better.
Beyond seizing only upon direct sales, ALYI is positioning itself to benefit from robust growth in the market’s infrastructure by constructing a comprehensive electric mobility ecosystem centered around introducing and educating on the benefits of an EV market in Kenya. The plan is to bring together commercial and academic resources that combine design and engineering expertise to create an original and sustainable electric mobility future. Moreover, its initiative can help the market move away from combustion engine transportation and catapult its brand recognition.
ALYI noted that its involvement in the planned annual symposium will be anchored by a globally recognized EV race event that can demonstrate the advantages of a new generation of electric-powered vehicles, and in particular, its ReVolt motorbike. For ALYI, the symposium can be a branding milestone that helps leverage its market presence and align them with multiple industry players to create specific agreements that maximize their potential in particular EV markets.
Undoubtedly, the globally-covered race will benefit corporate branding. But, its ReVolt motorbike will likely be the ultimate star of the show.
Alternet Systems ReVolt Motorbike Pre-Orders Grow
By riding the tailwinds of Uber’s successful launch into the African ride-share market, coupled with its intensified branding campaign, ALYI thinks its ReVolt motorbike will not only become the EV of choice but can also generate substantial revenues from a massive opportunity.
Also, ALYI is banking on other income sources aside from being a major supplier of EV bikes to the African ride-share markets. They are also intending to produce additional electric vehicle designs for the North American market. Pre-order interest is gaining traction.
To those that have not seen the iterations of the bike, it’s essential to do so. Its sleek design, which is modeled after the 1930s BMW R71 (www.revoltmotorbikes.com), can change the landscape of both ride-share and consumer markets based on its inherent competitive advantages compared to first-generation EV’s.
Indeed, the ReVolt’s styling, power, and affordability could make the bike a popular choice among a broad range of consumers in the global EV revolution. Also, for those who want to electrify their original bikes and clones, ALYI plans to market a conversion kit for BMW R71 or R71 clone owners that could allow them to maintain their classic bikes looks and at the same time bring them into the next chapter of EV technology. In doing so, ALYI can channel multiple revenue sources within a market expected to grow significantly in the next 3-5 years.
The excellent news for those just now learning about Alternet Systems is that they are already connected to the market, understand how the markets work, and are already positioned to take advantage of surging demand. Those three metrics alone make the company attractive on a valuation basis. Having available cash helps.
On that front, the RevoltTOKEN ICO could quench that need by making upwards of $100 million available to the company.
Funding Through Its RevoltTOKEN
No doubt, funding is key to success. ALYI has noted that its funding partner, RevoltTOKEN (www.revolttoken.com), has committed to funding ALYI’s electric mobility ecosystem vision by independently launching an Initial Cryptocurrency Offering (ICO) to raise $100 million. Notably, the company said they can access capital pre-ICO to advance its 2021 business plan.
ALYI has been transparent to highlight the importance of its RevoltTOKEN partnership. In a recent release, they also said that the token has already been created (see RevoltTOKEN website) and will file its ICO once its regulatory prerequisites are met and finalized. That could happen relatively soon.
Thus, with capital available from the token coupled with cash-flow from its imminent production launch of its ReVolt EV, the recent move higher in the company’s share price makes sense. But, despite a more than 20% gain, many investors expect much higher moves in the coming weeks, focusing on several potentially market-moving events. That speculation may be the reason for the recent bullish trading activity.
ALYI Emerging In 2021
Although nano-caps are inherently speculative, ALYI is entering 2021 with a well-defined plan, which helps close the gap between speculation and managed risk. Moreover, the stock performance in January may signal that investors are focusing on a potential trifecta of opportunity. The company has a great product, understands its markets, and may draw upon pre-ICO funding ahead of a planned $100 million ICO. The combination of all three can create tremendous shareholder value in the coming weeks and months.
Being early to an investment takes courage, but the rewards can far outpace those that enter late. And with ALYI diversifying its strategic plans and leveraging its strengths in a surging African EV market, the risk appetite for the stock is increasing.
No stock goes straight up, and investors should not expect that ALYI will, either. But, momentum appears on the side of the bulls, and for ALYI, that in and of itself can fuel investor’s appetites as they position for the first of several potential 2021 catalysts.
*share price recorded at market open on 12/28/20 of $0.01 and its price at press-time of $0.012
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