Alternet Systems Inc (OTCMKTS: ALYI) is at a critical juncture especially after having just come from a 52-week high. However, recent developments in the business should propel the stock beyond the current correction into fresh highs.
ALYI Share Price Analysis
After spending nearly four and a half years in uncertainly, the ALYI stock is finally showing signs of life. In particular, the stock touched a three-year high at $0.07 on February 7, 2019. Up until the rally, the stock was depressed below $0.008 for far too long.
Since February 7, the stock has kept oscillating around the 50–day moving average as a minor correction took place. The share price last crossed the MA (50) on the way down in mid-April and has established resistance at $0.03. However, looking at the price action since mid-May shows that there is positive momentum in the stock.
To be sure, the volume of ALYI shares traded stayed above 4 million per trading session since May 16 until May 24 when it dropped below a million. However, the upside price action resumed on May 28 when the volume jumped to a little under 2.5 million. In the latest trading session, investors moved just under 1.3 million shares in an upside price action.
In our last update, we identified the $0.02 mark as a critical support level and the $0.04 mark a resistance level which, if breached, the stock could be flooded by bulls and push the price to new highs. At the time of writing, the stock is just under $0.02 and with the momentum discussed above, the stock should make a lunge for the $0.04 mark soon.
About Alternet Systems
ALYI offers energy storage solutions which target the emerging electric vehicle sector and some military operations. The company is developing motorcycles which are powered by lithium-ion batteries developed in-house.
Alternet Systems has huge ambitions where it wants to grow its revenue by 1000%. Towards this end, the company has been pursuing a range of strategies geared at aligning the company’s operations with the goal.
Management Restricting Plan
Top on the list of areas which will facilitate the attainment of the goal by the company is sound management. The company has been working towards restructuring the management such that it can reflect its ambitions. In this light, the company’s CEO is now Randell Torno while Ed Bollen will lead Lithium IP Holding, a subsidiary. The company hopes to leverage the experience which the two gentlemen bring to better engage foreign governments, specifically, in regard to the operations which should go live soon in Africa.
The onboarding of the new CEO brings ALYI much closer to another company where Mr. Torno serves as the CEO. Africa. Restance, Inc. is a Kenya-based company with interests in socially and industrially sustainable initiatives. Therefore, ALYI is set to leverage the connection between Africa, Restance Inc, and the local environment to get off the ground at the fastest pace.
Expansion in Africa
Another key driver toward the anticipated 1000% revenue growth is the expansion of electric vehicle product sales in Africa. At the head of the exploits in Africa is ReVolt Electric Motorcycle assembly plant which will be set up in Kenya. In the latest management update, Alternet Systems revealed that in Q1 2019, the company signed orders amounting to $1.5 million for the motorcycles. More recently, the company signed another round of orders totaling $2 million. As such, the company anticipates over $20 million in revenues on an annual basis.
Underscoring the solidity of the Africa strategy is the fact that there is interest in the project by Kenya-based investors. In addition to the interest from a European investment group expressed earlier, the strategy is firmly underway. Notably, the company has scheduled a meeting in London with the European-based potential investors in June 2019 to iron out the details of the deal.
Mergers and Acquisitions
ALYI interest in the electric vehicle industry spans the whole world. In a bid to grow its production capability and capacity to be able to compete globally, the company implemented an M&A strategy which should place it at an advantage as the electric vehicle landscape continues to shift.
The electric vehicle industry is still nascent but there is real potential for growth. This gets more interesting as humans continue to become aware of the damage to the environment caused by the burning of fossil fuels. Be that as it may, ALYI has a sound strategy which should propel the stock to fresh highs in the near and long term.
In particular, the tapping of a CEO who has vast experience in Africa will enable the company to take the first mover advantage in a market which has all the right indications for a takeoff.
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Disclosure: We have no position in ALYI and have not been compensated for this article.