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: Cell Therapeutics (Nasdaq: CTIC) fell 10% in early trading Wednesday.

So what: After shares jumped yesterday, shares have been crushed today after Cell Therapeutics announced that it has sold $21 million of preferred stock and warrants to institutional investors. This gives the company additional cash for operations but also dilutes current shareholders.

Now what: The preferred shares are convertible to common shares at $0.37 per share, so this should give investors some idea of the value big investors see in the shares. Investors also received warrants at $0.45 per share for up to 22.7 million shares. The price of this offering was much better than yesterday’s closing price of $0.44 per share and would make me rethink a long position in this speculative stock.

Interested in more info on Cell Therapeutics? 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.

Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool has a disclosure policy.