Alternet Systems, Inc. (OTCMKTS:ALYI) Rising On Promising News
Alternet Systems, Inc. (OTCMKTS:ALYI) was traded quietly in the past year as the price was sliding down, reaching below 10 cents per share. Recently, however, the company stock is making a recovery and has reached it’s highest levels in over half of year of trading.
The reason for that is the news coming in from the company. On February 25, ALYI announced that the sale of their mobile financial services subsidiary to Utiba PTE, Ltd. For up to $5.5 milion and the ticker started climbing the charts. The terms in the press release were quite vague, however, did manage to attract some interest because the company is in a dire financial state and needs to acquire cash.
- cash: $42 thousand
- current assets: $483 thousand
- total assets: $2.2 million
- current liabilities: $6.6 million
- total liabilities: $6.9 million
- quarterly revenues: $125 thousand
- quarterly net loss: $1.2 million
These were the figures contained in their financial report covering the quarterly period ended September 30, 2013 and to be honest they don’t provide a lot of trust in the company’s management.
Paying $602 thousand in salaries when you are making $125 thousand in revenues doesn’t sound really productive in our books and it doesn’t give much credibility to the management’s abilities to lead the company to a bright future.
Still, ALYI is in a period of restricturing and has began its first steps, with investors hoping that the people leading the company will finally do their job. The latest news coming from ALYI are from February 26 when we were informed that they have been awarded Ven Authority by Hub Culture and will be working together to provide new services and products to Ven (digital currency) users.
Ven has been around for quite a while, but digital currencies have just began to catch fire and are attracting a lot of attention. We reckon that this is the reason behind the 61% growth that ALYI has made after announcing the news.
Still, the market cap of $15 million that ALYI has, seems a bit high judging by their productivity, so there is still room for corrections. In any case, be sure to do your due diligence and weigh out the risks.
3D Eye Solutions, Inc. (OTCMTS:TDEY) also made a great session yesterday, exploding with a 263% gain in price. The other big winner was Orofino Gold Corp. (OTCMKTS:ORFG), who gained 67% on quite the volume.
