Alternet Systems, Inc. (OTC: ALYI), in spite of their robust PR campaign, may just be one of the more modest penny stock companies out there. ALYI seems to have some serious partners that it’s keeping behind the scenes – at least for now.
ALYI is building some kind of business around what it calls an “electric vehicle (EV) ecosystem.” The company has produced and demonstrated an electric motorcycle prototype and announced some contracts for the motorcycle … if they can get it produced. Somehow, the electric motorcycle prototype is supposed to be a preview of their bigger “electric vehicle (EV) ecosystem” vision.
“Ecosystem” is a word that offers a whole lot of room for interpretation. It could just be an approach to giving ALYI a lot of leeway to be in the EV market without any specific EV offering.
On the other hand, ALYI could really have something in the works that truly amounts to an EV ecosystem that will be more clear when they are more forthcoming with some business developments underway that in the meantime they seem to be keeping under wraps.
Reading Bewtweern The Lines
In the recently published annual report for 2020, ALYI made the following disclosure under subsequent events:
“In April 2021, Alternet Systems, Inc. executed multiple business agreements in conjunction with a $1 million investment in Zoomcar, Inc. Alternet purchased Zoomcar convertible preferred stock at $2.50 per share. The purchase included one warrant per share to purchase Zoomcar common stock at $2.50 per share. To provide the funds for Alternet’s investment, the Company issued a $1 million convertible note with a $0.10 conversion price.”
So ALYI raised $1 million at $0.10 and purchased stock and warrants in the individual mobility technology company, Zoomcar, Inc., servicing developing economic regions starting with India.
There is a lot of buzz around Zoomcar. Investors in Zoomcar include Sequoia Capital, Ford Motor Company, and Nokia Growth Partners among others. Uri Levine has just been appointed chairman. Levine co-founded the now “Google acquired driving and traffic app, Waze.”
And yet with all ALYI’s news, they didn’t announce the $1 million at $0.10, nor the Zoomcar investment.
Not to mention that ALYI has been talking about a “global brand name EV race” as part of its annual symposium central to its overall EV ecosystem strategy. What other global brand name is there in EV racing, but ABB FIA Formula E?
Maybe ALYI has something else up their sleeve, but it’s a reasonable guess that ABB FIA Formula E is the race partner ALYI is talking about.
See what the BMW and Andretti Motorsport collaboration had to say about the connection between ABB FIA Formula E racing and the future of production EVs:
“BMW i Andretti Motorsport will be competing with BMW iFE.21s. Their core is the BMW i drivetrain Racing eDrive03, which is a result of unprecedented close collaboration between production and motorsport engineers. The technology transfer between motorsport and production development is more intensive in the Formula E project than ever before in the history of BMW.”
Building An EV Ecosystem
ALYI building an EV ecosystem to serve the continuous development of electric vehicle transportation by bringing industry experts for EV technology and overall EV deployment business models together around an ABB FIA Formula E Race may be more of a grounded strategy than a cursory review of ALYI’s current EV ecosystem message might otherwise convey.
Clearly, Zoomcar’s technology approach to expanding induvial mobility in emerging markets is now a component of ALYI’s EV ecosystem vision.
If ABB FIA Formula E is the target race partner, then that is a compelling adhesive that could truly tie ALYI’s EV ecosystem vision all together.
It’s conceivable, if not likely, that brand names like Zoomcar and ABB FIA Formula E are not authorizing ALYI to make announcements yet. Brand managers can be picky about messaging. So, even though ALYI seems to be prolific with their news, the best may be yet to come.
The OTC market has no shortage of companies with big ideas and small bank accounts trying to raise money by promoting their big ideas in an attempt to garner trading attention that in turn attracts investors that can fund the big ideas into production.
Every once in a very rare while, an OTC company graduates to a big board exchange and grows into an operationally self-sustaining endeavor. However, most OTC market companies eventually fade away in the end.
The Bottom Line
The opportunity to make money from investing in big-idea-OTC-companies is in figuring out how to take profits when share prices react positively to milestone achievements an OTC company hits along the way before it runs out of steam.
Milestone successes don’t frequently lead to long-term, sustainable operational success, but milestone successes can present attractive ROI opportunities. A new contract, a new investment, or a positive test result could result in a share price increase in reaction to optimism that this one milestone might lead to long-term success. And that share price increase could be an opportunity to profit from an investment made prior to the milestone.
ALYI has certainly had its PPS ups and downs in conjunction with its own milestone achievements along the way in addition to a few ups and downs probably resulting more from the influence of overall electric vehicle industry wide achievements.
With the Zoomcar investment included in the most recent 10k, ALYI probably has some more ups ahead in its future. Will it become one of the rare, few OTC companies to make it in the long run and up list to big board exchange. That’s yet to be seen, but at least their hanging out with the right crowd. iQSTEL, Inc. (IQST) is one of ALYI’s EV ecosystem partners. With 149% revenue growth to $44.9 million in revenue reported in audited financials, IQST is looking like a strong prospect for a big board up list.
In spite of all the news ALYI publishes on a regular basis, it might yet be holding back on some of its biggest potential achievements.
First published at pennymillions.com