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 Chinese chip manufacturer RDA Microelectronics (Nasdaq: RDA) popped as high as 11% in intraday trading Friday on substantially lower than average volume.

So what: After touching a high of about $16.05 in the afternoon, the shares quickly retreated and are now up about 4.5% at the time of this writing. There doesn't seem to be any obvious company or industry-specific news driving today's wild swings, so I'm chalking it up to the usual extreme volatility that comes with red-hot Chinese small caps.

Now what: For most investors, RDA is too speculative right now to take a shot on. The company has already returned more than 50% since its IPO last month, and currently trades at a big P/E premium to listed rivals like Broadcom (Nasdaq: BRCM), RF Micro Devices (Nasdaq: RFMD), and Skyworks Solutions (Nasdaq: SWKS). While Mr. Market seems very excited about RDA's growth potential, I'll stay on the sidelines until there is more proof of it.

Interested in more info on RDA? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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