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 composite and building materials maker Owens Corning (NYSE:OC) saw its shares fall as much as 12% after updating 2012 earnings guidance.

So what: The company now expects full-year earnings before interest and taxes of between $280 million and $310 million. Previously the company expected EBIT of $360 million-$420 million. The reason shipments will fall is a price hike the company implemented in September.

Now what: It looks like the market wasn't ready for higher prices and Owens Corning may have miscalculated a price hike. The good news is that the insulation business will be better because of an improved housing market. The stock is trading at 23 times trailing earnings even after the drop and I don't think this is sending out any buy signals today. I'll wait for a fundamental improvement to jump into this stock.

Interested in more info on Owens Corning? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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