NEW YORK ( TheStreet) -- The restructuring plan laid out by First Solar (FSLR - Get Report) on Tuesday addresses the market reality that CEO Michael Ahearn encountered last December when he retook control of the solar company. What it can't do is provide answers to the critical questions about First Solar's strategy to succeed in coming years.
"They are responding to 2011, not addressing what could still happen," said Maxim Group analyst Aaron Chew.
The pricing free-fall has picked up again in solar, and the two most important European markets -- Italy and Germany -- have signaled in solar subsidy scheme revisions that the biggest markets for solar will not exist for much longer. "Today's action can't address that," Chew said. So the First Solar restructuring plan cleans up the mess, but isn't the all-clear signal that a rally in shares might lead some to suggest is happening.The best way to view this First Solar rally is one more bounce up from the $20 mark, which serves as the new support level for the stock. Last week, First Solar experienced