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 digital media services specialist DG FastChannel (Nasdaq: DGIT) surged 12% in intraday trading Tuesday after its fourth-quarter results easily topped Wall Street's expectations.

So what: Fueled by a 61% jump in HD advertising revenue, DG FastChannel posted fourth-quarter GAAP earnings of $0.51 per share, versus the average analyst estimate of just $0.45 per share. DG FastChannel has been restructuring its business toward more of a retail offering, and judging by the recent results -- revenues, margins, and profits all grew in 2010 -- the transition seems to be going rather smoothly.

Now what: Even with today's pop, DG FastChannel looks like a decent value. Demand for HD content delivery should only continue to grow, and as President/COO Neil Nguyen puts it, "the DG Network is prepared for increasing HD volumes in 2011." More importantly, with a PEG ratio of just one, investors won't have to pay too high of a price to make that bet.

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