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 The Fresh Market (Nasdaq: TFM) fell 10% after the company released earnings.

So what: The company swung to a fourth-quarter loss of $18.1 million from $20.8 million in earnings last year. After adjustments, the earnings per share came to $0.33, above analysts' estimates of $0.30 per share.

Now what: 2011 earnings estimates of $1.01 to $1.05 per share were even above estimates of $1.01 so the move today was a bit of a head-scratcher. The Fresh Market isn't a cheap stock, trading at 41 times the bottom end of next year's earnings estimate, but an earnings beat doesn't usually lead to this kind of reaction. I'm cautiously optimistic on this stock, but I'm being careful based on the stock's valuation.

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