Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Internet-based telephony specialist BroadSoft (Nasdaq: BSFT) got a crystal clear signal on Monday, jumping as much as 10.8% on low-volume trading action.

So what: Northland Securities just started coverage of this stock with a buy rating and a $38 price target. The analyst action nearly became a self-fulfilling prophecy as shares topped out at $37.21 in intraday action.

Now what: VoIP experts commonly trade in nosebleed territory: BroadSoft, 8x8 (Nasdaq: EGHT), and Vonage (NYSE: VG) are all priced at more than 30 times trailing earnings today. The technology holds tons of promise, but margins are sliver-thin and competition is fierce. BroadSoft shares have now more than quadrupled over the past 13 months, and I have to wonder whether these prices can be sustainable.

Interested in more info about BroadSoft? Add it to My Watchlist.