Alternet Systems (OTC: ALYI) CEO presented an inspiring overview and corporate update that offered investors an inside look at the company’s plans for 2021. Since last week’s update, shares continue to trade higher and have now surged by more than 120% since the first of the year. The attention, and attraction, to the stock is gaining momentum as the company gets closer to its planned production of its Retro ReVolt electric-powered motorcycle. Recently, ALYI announced a “sell-out” of its limited-edition production MODUS-nameplate bikes, and investors are speculating that the interest is a sign of great things to come. They may be right.
In last Friday’s remarks, ALYI CEO Randell “Randy” Torno was optimistic that 2021 will be a transformational period for his company. He was especially excited to announce that his company is nearing its next milestone: the production and delivery of its first electric motorcycles. Those ReVolts are part of an existing order in Sub Saharan Africa to serve the motorcycle taxi (boda-boda) market. ALYI estimates the order demand at two-thousand bikes as of December.
Also a part of its Friday update, ALYI announced that its design team is advancing two additional electric motorcycles that can target different markets. As expected, the company will produce an electric motorcycle with a sleek retro style based on a BMW R71 clone (www.revoltmotorbikes.com). They will also offer a conversion kit for BMW R71 or R71 clone owners to electrify their own vehicles. Two new bikes are in the works.
The new designs take a different path. ALYI’s first new design has the company building an electric motorcycle to immediately to specifically support an Uber and Lyft type transportation solution within the African motorcycle taxi (Boda) market. Its next design is said to be a paradigm changing, state-of-the-art electric motorcycle that will be integrated into the electric mobility ecosystem. Both extend the opportunities for ALYI and bring the African ride-share market into focus.
Regarding the African EV motorcycle markets, Mr. Torno also said that ALYI has made substantial progress during the past three months to bring a brand name EV race to Africa as the anchor for its electric vehicle ecosystem. That race could serve as an ambassadorship, of sorts, to drive the design and production of future electric-powered transportation to the African market. For ALYI, that specific market may only be the starting point for business in 2021.
ALYI also expects to capitalize on a global EV ecosystem expected to become a more than $800 billion industry by 2027. The great news is that they have already started that process.
Video Link: https://www.youtube.com/embed/LJEW7v3bFa0
ALYI Nears Commercialization Of Retro ReVolt EV Motorcycle
Although the shares trade at a nano-cap level, the more than 120% increase in price is attracting attention. Moreover, liquidity in the stock is opening the trade to a larger class of trader than ever before, who see the company’s push to start production, penetrate the African boda-boda market, and extend its reach beyond a pure EV motorcycle play as reasons to take advantage of prices at these levels.
Several things are working in ALYI’s favor. First, the company has been transparent and timely in keeping investors informed about decisions and strategies to create shareholder value. Second, a milestone timeline has been informally set, which could generate even more enthusiasm as each is reached. And, third, investors are starting to realize that ALYI is much more than a one-product company. It breaks down this way.
Moreover, with milestones acting as a valuation measuring stick, investors should get the first with the start of production on its ReVolt EV motorbike. Not only is that milestone expected to be a near-term event, but it also comes with a built-in catalyst of bringing the bikes to market. Those sales will immediately transform ALYI from a research-based company into a revenue-generating business. That would be big news.
And with ALYI noting that its design and production engineers are getting near to finalizing production and facility requirements, its plans to deliver the first ReVolt EV motorcycle by early summer of 2021 puts that potential catalyst only a few months away. Investors will likely trade ahead of the news.
Better still, production of the ReVolt puts the next action in motion.
Targeting A Massive African EV Ride-share Market
Production of the ReVolt starts the next action to penetrate the African ride-share market. Keep in mind, though, that ALYI is already setting up its infrastructure to hit the ground running. And ALYI understands the value proposition.
The African ride-share market is a mega-million dollar market segment opportunity that ALYI believes brings tremendous revenue-generating opportunities right to their production doors. That confidence stems from deals already announced, including one in Kenya, for 2000 ReVolt motorcycles. And, the company said they are in talks with other interested parties that could add to those numbers. The bikes are expected to be a perfect design for the market.
First, because of its sleek design, rugged build, and powerful electric engine, the ReVolt addresses the enormous needs of the African motorcycle taxi or “boda-boda” market, which is a massive market often overlooked by investors and analysts. But despite being overlooked, motorcycle taxis are the preferred method of ride-share transportation in China, India, and many countries within Africa. ALYI knows that, which is why meeting that massive demand is what’s in ALYI’s cross-hairs.
Further, ALYI is expecting to get a considerable tailwind from Uber Africa, which is actively developing the ride-share markets in African countries. Alongside a few local startups, Uber Africa launched Uber Cash last summer, which works in tandem with preferred financial services within the region to facilitate rider’s payments for service. An important takeaway beyond the more than two-million riders and more than 29,000 motorcycle taxi drivers already in the market is that Uber is interested in developing the market with a focus on using entirely electric motorbikes. The excellent news in that respect is that Uber is a service provider – not a vehicle supplier. ALYI intends to bank on handling the equipment side. More details on its progress is likely to come soon.
The third value driver is for ALYI to expand its market opportunities.
Millions More In Complementary Markets
The interesting thing about ALYI is that while they are often perceived as a pure-play on an EV motorcycle, they are actually a multi-product company. Beyond selling what they hope are the most popular bikes in the market, ALYI is uniquely positioned to expand the services side of its business model, as well.
Notably, with the ReVolt being designed after the 1930’s BMW R71, which is still in service in many countries outside of the United States, ALYI can connect to multiple market opportunities. Specifically, they can immediately fill the need for EV service providers, conversion kit dealers, and mechanics. Each of those complements not only the sale of its ReVolt but also position ALYI to market an impressive line of next-generation EV power source products. These opportunities bring together a massive, multi-million dollar combined market opportunity. Therefore, to think of ALYI as a unidimensional company would be selling the company way short.
In actuality, the combined ALYI’s presence in the African ride-share market can be substantial. And because they are familiar with how the markets operate and understand the business culture, they may be several steps ahead of potential competitors. Don’t underestimate that advantage; knowing the market goes a long way to getting products approved for sale in some countries. And by reading their bio’s, you find out that ALYI management is connected.
It’s an asset that could help expedite ALYI’s presence and penetration into the markets.
Targeting Near-Term Milestones
The CEO update certainly provided a spark in interest. And while the shares are trading more than 120% higher since the start of 2021, the market-cap is still significantly undervalued based on the targeted opportunities. Also, ALYI may very well be an under-the-radar stock, and that’s fine too. Shrewd investors that seek out opportunities often get the most considerable rewards.
Undoubtedly, ALYI will be a play on the African boda-boda market and how well they can penetrate the market. In front of that, though, at least two catalysts, noted above, may be front and center that can drive the company’s value substantially higher. A pre-order sell-out, a strong update from its CEO about near term ReVolt production, and demand for the bikes all point to a valuable future at ALYI.
Thus, despite the stocks sharp move higher and based on a series of positive updates, it’s likely that more shareholder value is on the way. Stay focused on the newsfeeds, ALYI keeps its shareholders well-informed of progress.
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