Wall Street trading continues to confound me.
SAN FRANCISCO (MarketWatch) — First Solar shares surged 10% Tuesday after the struggling company announced a draconian overhaul of its operations, capping a rally by more traditional energy stocks that drew strength from firmer oil prices.
First Solar Inc. said before the market open it plans to shut its plant in Frankfurt, Germany, idle indefinitely four production lines in Malaysia, and eliminate 2,000 jobs, or roughly 30% of its work force.
The move reflects tough competition from Chinese solar panel makers and deteriorating market conditions in Europe, where the region’s ongoing debt crisis has cut into government subsidies for renewable energy.
First Solar shares, which had lost 84% of their value over the past 12 months, rose $2.14, or 10.3%, to close at $22.96.