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 Cobalt International Energy (NYSE: CIE) sank 10% Tuesday after the oil explorer said it would sell 47 million shares of its common stock.

So what: Cobalt's shares have rocketed recently on positive results at its Cameia-1 Angola well, so it's no surprise that management is pouncing on the stock's run-up to raise some capital. Given the significant size of the offering, however, investors have good reason to be concerned about its likely dilutive effects.  

Now what: I'd continue to remain on the sidelines. Even with today's double-digit pullback, Cobalt's high-beta shares are still up more than 200% over just the past three months. While Cobalt's prospects in Angola are certainly tantalizing, the stock's still-speculative nature makes it an easy pass for conservative investors.

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