Today we are talking about a popular penny stock, listed for 3 cents, Alternet Systems, Inc., OTC Ticker Symbol, ALYI. Yes, ALYI is up 307% versus the stock’s price of .0096, one year ago, on August 10th, 2020. ALY does have big plans in the electric motorcycle and financial services marketplace. Today, I’ll share the details today, whether ALYI could potentially be a big long-term winner.
OTC stocks are highly volatile and risky, and you could potentially lose your money. So today we’re going to dive into the details. Many traders see ALYI’s press releases and have fear-of-missing-out on this one. Stick around, and later in the video I’ll share my opinion, if this is a stock to consider holding for the long-term.
I did spend hours poring through articles and ALYI’s financials, to aid in a decision whether it made sense to buy shares of this stock. Especially, to hold, longer, for that potential big run-up in price.
In the past I worked for years with Fortune 500 CFOs and financial consulting teams, to help companies determine where they were making money. Now I use this knowledge to dig into HCMC’s details.
But this is not financial advice, and for entertainment only.
Hi investing friends, this is Lynn, and welcome back!
So Let’s go and review today’s hot stock!
Their website describes ALYI as providing Sustainable Energy Storage Applications
ALYI has developed a comprehensive, long-term electric mobility business strategy focused on rapidly expanding into the market in Sub-Saharan Africa. The strategy begins with the production of ALYI’s proprietary ReVolt Electric Motorcycle designed for a rugged environment and to support the multi passenger Ride-Share industry in Africa already recognized by Uber and Lyft. ALYI has evolved from managing the evolution of a portfolio of patented lithium technologies and maintains initiatives in alternative energy storage research and development, and in energy storage needs specific to military applications.
A major focus for ALYI appears to be on their ReVolt Electric Motorbike. Alyi is working with an industrial engineering firm to design the manufacturing capacity to mass produce the ReVolt Electric Motorcycle. ALYI also claims to be designing electric delivery trucks specifically for the Sub-Saharan Market, with even more types electric vehicles are in the works.
The current global market for motorcycles, scooters and mopeds is approximately 130 million units per year resulting in $120 billion in annual sales. As per capita income in developing economic regions continues to improve, motorcycle, scooter and moped sales are also expected to grow. Global automobile sales in 2018 is expected to reach just 80 million units.
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ALYI’s Yahoo Finance profile also describes ALYI as, through its subsidiaries, focusing on providing digital payments and data analytics, micro segmentation, and marketing intelligence services for mass consumer goods, payments, financial services, and telecommunications sectors. They offer financial services software, including biometric authentication, multichannel payment solutions, electronic point of sale modernization, payment processing, and data analytics tools, as well as NFC point of sale solutions for the mobile financial industry. In addition, they provide data analytics tools and services for the telecommunications and financial services industries. The company holds a partnership with iQSTEL, Inc. to codevelop two-way device communication solutions specific to the EV operating environment. Alternet Systems is headquartered in Miami, Florida.
Now let’s talk about the all-important financials. One of the biggest risks of OTC stocks, is their lack of financial stability. So, I did a deep dive into ALYI’s financial reports. If you are invested in ALYI, or considering an investment, you’ll find these details to be valuable.
It’s important to look at a company’s financials. ALYI has a market cap of 3.4 Million. They are unbelievably tiny to even be listed as an OTC stock. They have a Beta, 5 months average of 1.75, which means their stock moves 1.75 times more the average movements of the overall stock market. They do have a surprisingly large average trading volume of 8.5 million shares per day – so obviously the day traders have discovered ALYI.
In looking at ALYI’s income statement. The lines with yellow highlights indicate that since 2016 their revenues have been extremely low, they had zero gross profits and little gain on sales of security. Their cash that ALYI produces is basically non-existent.
Free cash flow generated from a company’s own operations or operating efforts is the most important measurement of a company’s health. Here you can see negative or free cash flow generated by ALYI from 2016 through 2018.
This lack of free cash flow and a poor income statement is all a big red flag for considering any long-term investment with ALYI until they come release updated financials
Also, ALYI has not released financials since 2018, so if you are looking at this company for a long-term investment, you have no idea what you’re getting for your money.
But, ALYI is great at cranking out press releases, which could make it a potential candidate for shorter day or swing trades on the news.
Here are the highlights of their latest news:
ALYI Electric Motorcycle Pilot Elevates Potential to Rapidly Exceed 2000 Unit Target Winning Greater Share of Million Motorcycle Market, published in an August 6th news release. This article describes ALYI as currently running a comprehensive electric motorcycle pilot in Kenya targeting the motorcycle taxi market.
ALYI’s CEO, Randell Torno, was in Nairobi to coordinate with all pilot parties and partners on the ALYI electric motorcycle pilot.
There are over 1 million registered motorcycles in Kenya with the majority of those motorcycles deployed in the motorcycle taxi market.
While ALYI confirms having an order for 2,000 electric motorcycles, the current pilot is uncovering a much larger opportunity.
ALYI has identified a potential merger and acquisition opportunity coming from the company’s evolving electric motorcycle pilot in Kenya that could substantially accelerate the expansion of ALYI’s overall electric vehicle market share.
In the course of Randell Torno’s current pilot meetings in Nairobi, he has discovered and engaged an opportunity to potentially accelerate and expand ALYI’s EV initiative, not just within the motorcycle taxi market, but within additional commercial fleets with additional electric vehicles other than electric motorcycles.
The Kenyan electric vehicle market is relatively well populated with various, small electric vehicle initiatives, many of which are impacted by capital constraints resulting from investor concerns surrounding Covid. Mr. Torno visited with a number of these EV initiatives and found them receptive to partnerships and potential acquisition transactions that could improve access to capital. ALYI is drafting a plan to potentially consolidate local resources and expand its overall EV market share expansion.
ALYI has partnered with Revolt Token to finance ALYI’s growth by offering participation in the EV ecosystem through the sale of Revolt Tokens.
Now note that this article does not provide a dollar amount given for the potential Kenyan market size, or describe the number and size of competitors or partners. Also lacking are details of the revenue amounts that ALYI would hope to gain from efforts in Kenya.
This time ALYI is encouraging investors to partner with Revolt Token to finance ALYI’s growth through buying Revolt Tokens. ALYI then provides a link to where investors can buy these tokens.
It does appear that ALYI’s business plan is to make money through having investors buy these tokens!
Another Intrado Article published on August 3rd also was pushing a purchase of the revolt tokens. Here ALYI announces a 25% Bonus When these Revolt Tokens were purchased. ALYI describes enhanced “Know Your Customer and Anti Money Laundering” features through the RVLTtoken site to better protect participants in the ALYI Electric EV Ecosystem. They also describe that Revolt Tokens can now be purchased with a credit or debit card, and in addition to being purchased in exchange for other cryptocurrencies such as Bitcoin and Ethereum. The minimum purchase is to be 250 Revolt Tokens, and that anyone that anyone purchasing Revolt Tokens prior to the exchange listing of the Revolt Token cryptocurrency will be credited with a Bonus of 25% of the value of the Revolt Tokens in their account at the time of the exchange listing. The article also refers to potential carbon credit dividends and VIP access to EV racing in Africa. The article then states the objective of the EV symposium and conference is to advance EV technology by building EV solutions for the African market – a power constrained, rugged environment with one of the lowest per capita transportation deployments in the world. Also explained is that ALYI plans to make a major announcement next month regarding the EV race that management expects will garner substantial attention to ALYI’s overall EV Ecosystem strategy.
Regarding this stock’s movements. ALYI’s stock has been around since 2003, when it had a high in the $4 range and since then has been sliding down. The stock hasn’t done much since 2009, and you can see an extended base.
Currently per this E*TRADE one month, 60-minute chart, the stock has been consolidating between the .287 and 3 cent range.
You can see here that per this OTC short report, that ALYI is consistently heavily shorted. Their short percentage on August 6th was 57 percent. In looking at the long slide down in their stock chart, and this short report, it appears that the short sellers have the big opportunity in this stock for now.
ALYI has big plans, and I am interested to view an updated financial statement, that will hopefully demonstrate that they have found a source of funding enabling them to execute their plans.
My take is that for now, ALYI’s stock is best suited for day trades or short-term swings, until they can share some updated financials that can demonstrate business progress. Or unless you have money you can afford to lose, that you want to bet long-term on ALYI’s stock as this is a very risky one!
I always love hearing from you, so please let me know in the comments below, what your thoughts are about ALYI, or if there is anything I missed. I’d also love to hear about other stocks that you are excited about right now.