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 Synageva BioPharma (NASDAQ:GEVA), a clinical-stage biopharmaceutical company developing therapies to treat rare and unmet diseases, popped briefly by as much as 13% at the opening bell following a trio of positive news, headlined by its fourth-quarter earnings report. Shares have since retreated to a more modest gain of 6%.

So what: For the quarter, Synageva reported total revenue of $3.47 million, right in line with the Street's expectations, but it managed to only lose $1 per share, $0.02 per share narrower than the Street had forecast. Anytime a clinical-stage biotech can reduce its losses, and thus its cash burn, it's good news. Secondly, Synageva announced that it has been granted a patent for the treatment of lysosomal acide lipase (LAL) deficiency, which is what sebelipase alfa, its lead drug, is targeting. Finally, Synageva got a bit of help from research firm R.W. Baird which came to the defense of its recent share-price weakness and noted that the company should be bought at its current levels. It maintained its outperform rating and $107 price target on the company.

Now what: This is certainly all good news here today, but I still cannot wrap my hands around Synageva's monstrous $3.3 billion valuation given its precipitous cash burn and the fact that it has but one other very early stage clinical study beyond sebelipase alfa. Its current price assumes utopian results from all of its studies, as well as the perfect launch of its drug, if approved. It's extremely rare that anything ever goes according to plan in the biotech sector, so I'm among the minority here that considers Synageva to be potentially overvalued.

Synageva BioPharma has soared over the past year, but even it may struggle to keep up with this top stock in 2014
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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