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 Mecox Lane Limited (Nasdaq: MCOX) fell as much as 47% intraday after the company reported its third-quarter results and issued guidance for the fourth quarter.

So what: On paper, the quarter doesn't look too bad with Mecox reporting 36% revenue growth, but investors seem to be punishing the fact that a $13 stock yesterday produced only breakeven results. With no analyst estimates for comparison, things get even more troubled when the quarterly report breaks future revenue projections into three components: online revenues, company-run stores, and franchised stores. I'm betting investors are seeing only the online revenue guidance of $44 million to $46 million next quarter and not adding the whole together.

Now what: Lately, there has been no saving grace to being a Chinese-based equity (see RINO International (Nasdaq: RINO)) and I think we're seeing how a lack of coverage or regular disclosures can truly damage shareholder equity. I'd be inclined to stay on the sidelines with yet another quarter of lackluster profits in the books, placing Mecox at a trailing price to earnings of more than 70. I'd much prefer to own competitor (Nasdaq: AMZN), which is growing like wildfire and has a much better cash position.

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