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 oils product maker Solazyme Inc (NASDAQ:TVIA) fell as much as 11.5% today after announcing a new product, as well as a dilutive stock offering.

So what: The new product is the first encapsulated biodegradable lubricant for oil and gas drilling called Encapso. It has already been tested in the field and, given the growth in shale drilling, presents a strong growth opportunity for the company. 

But that news was overshadowed by the announcement that Solazyme intends to sell $100 million in convertible notes and 5 million shares of stock, which will further dilute shareholders. 

Now what: The challenge with an emerging company like Solazyme is that it needs tremendous amounts of capital to create the infrastructure needed for growth. That can lead to dilution from time to time as new capital expenditures are made, which is what management intends to use this money for. It's just one of the risks of investing in a stock like this, although investors should keep in mind the upside potential for drilling fluids and other potentially high-margin products, which is the upside for the company.

Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of Solazyme. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.