This Monday, it was the small village of Bogdan in Bulgaria that focused the trading hype on Euro Solar Parks Inc.(OTC:ESLP) stock. Not only did the trading volume reach an all-time high of 1.1 million, but the price increased by more than 40%, closing at $0.46 per share. To attract investors, an announcement from the company was issued together with stock promotions that took place. Both covered the recent acquisition of land in Eastern Europe, where the company is set to develop its first project. As the name suggests, main line of business for Euro Solar Parks Inc. is the construction of solar power plants in Eastern Europe and South America. The first step has been made by buying suitable land in Bulgaria from a local company which is now a subsidiary of ESP. 
In fact, this is the first real proof since 2008 that the company really intends to do business in the above mentioned regions of the world. Since its inception in 2008, little could be found regarding ESLP current activities as there was no news, but only financial reports that did not include anything of interest to the investors. Respectively, since ESLP was introduced to the stock market, it was only on several occasions that any trading activity took place. The close observation of the project in Bulgaria is actually the only tool to evaluate the company as an investment opportunity.
First of all, Euro Solar Parks seems as a good option for the speculative short-term investor. Upon similar announcements from the company in the near future, the price could rise in an even faster manner. On the other hand, long-term investors have to consider several aspects of this current project. At first site, it is a good management decision to focus the operations in Bulgaria. The price of the land is acceptable, there are also targets set by the European Commission according to which 20% of the total energy production should come from renewable energy sources by 2020. Even more appealing is the fact that solar and wind power plants on the territory receive a 25-year contract with the government for purchase of the produced energy. In plain words, if the company succeeds in Bulgaria, it would have assured revenues for a quarter of a century. [BANNER]
This is the bright side of the story. There are other factors that have to be considered, though. This is by no means a niche opportunity. The government subsidies and favourable weather conditions have already attracted lots of players to compete on that market. Which means that sooner or later, supply would exceed demand and not all photovoltaic plants would have a market for its production. There are even talks of the coming “energy balloon”, much like the real estate crisis of the previous year. So even if the company develops its project, this still does no mean success. It has to receive government approval and a contract for the purchase of energy. Given the experience of other companies on the local market, this is more often not an extremely hard thing to do. It is yet to see whether Euro Solar Parks is up to the task, and thus whether sustainable growth in the share price should ever be possible.
