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 Alliance Fiber Optic Products (NASDAQ:AFOP) jumped more than 10% early Thursday following a positive analyst note.

So what: Sidoti this morning initiated coverage on the company with a buy rating and a $28 per share price target. That represents a nearly 40% premium for investors who bought even after today's pop.

Now what: Even though Alliance Fiber Optic Products has risen nearly 70% from its February low -- a performance helped by its solid first-quarter results -- the stock still trades at a reasonable 3.9 times trailing 12-month sales, and 14.6 times next year's estimated earnings. I agree with Sidoti on this call, and can't blame the market for bidding up shares today.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.