Alternet Systems Inc (ALYI)

[alexbh2285]

I'll try. They literally have nothing but a patent portfolio for which they will pay $1.2MM (they have definitely paid $200K so far and hopefully they have paid the second $200K that was due last month so $400K but for some odd reason they have not put out press to say they have paid this and how they raised the money when they only had $167 (not thousand) at the end of the quarter).

They have a current account deficit of $4.8MM and a current ratio of 0.25 when usually less than 1 scares anyone looking at balance sheet health. Granted, $2MM of this is wages payable but I think eventually the employees will want to get paid.

So $6MM+ of total debt relative to assets of $200K to $400K and the stock at $.024 implies that ALYI is worth about $9MM ($2.8MM market cap plus the $6MM+ debt). At $1 the company would be worth over $120MM - how would you justify that? All they have is the patent portfolio (which was SOLD at $1.2MM by a Air Products which had more resources and knowledge to make it worth more if it were) which is maybe worth $400,000 ($1.2MM less the $800K they still owe). Also until they release the info we don't know if or how they have made themselves current in paying for that. The only other "asset" they have is the CEO Torno who has a pretty horrible track record at his other companies (ANCE and PJET) and could not even put together a promised presentation due to a known and prescheduled business trip in Africa and you cant value the prototype of an electrical motorcycle which they don't currently have the cash or other resources to produce. Why would this company be worth $120MM or more - i.e., $1? What do they have other than the patent portfolio and why is that worth more than the $400K they have paid for it? Air Products knows the patents better and has better resources and contacts to monetize them so it is very hard to argue they are worth more than $1.2MM or that Randall Torno has some special battery technology or vehicle manufacturing or management expertise worth more than $100MM.