Volatility describes best the performance of Blue Sphere Corp. (OTC:BLSP) shares on the stock market. Yet, the new year obviously sparkled optimism in investors, as the price is almost 100% up from the market open at $0.45 on Jan. 3rd. Friday`s session alone brought a 12% increase with the highest trading volume of the week.
The upward movement has its cause and in this case it is the combined effect of stock promotions and company announcements. They all include positive news about signed contracts or such with pending signature in the near future, as well as about secured additional financing for the projects of the company. This, of course, brought the hype to the stock market and the company continued fueling the trading activity with news like that from last Tuesday. According to it, a Memorandum of Understanding has been signed for a landfill project in Ghana.
Now, positive news aside, there is also much uncertainty when considering this company in terms of investment potential. Blue Sphere focuses its operations on two areas – the reduction of greenhouse gases and the production of renewable energy. Simply put, the company helps enterprises find a solution to their emission problems by offering the right technical means, and by trading carbon credits on the market. The company currently has eight projects in the pipeline in a different stage of execution, and since development countries find it increasingly difficult to comply with the 2020 emission targets, it is on them that the company focuses its operations presently.
The geographical reach of BLSP is impressive – from West Africa to Eastern Europe and Asia. The more impressive fact, though, is that this was obviously achieved in just a couple of months, since Blue Sphere Corp. started its operations in the beginning of 2010. Prior to that, the company`s activity included managing automotive websites – a rather unsuccessful enterprise according to the financial reports. [BANNER] The sharp shift in the business line, coupled with no exposure to the field of operations at present, suggests that it is yet to see whether the company is worth investing in. In general, this is not exactly a niche opportunity, since the Kyoto Protocol and the Copenhagen Treaty have spawn hundreds of companies that are set to help enterprises comply with the 2020 strategy. It is still a highly lucrative field, but in the case of Blue Sphere Corp. the future in this business seems nothing but misty both to traders and common people alike.
