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 biotechnology company Emergent BioSolutions (NYSE: EBS) experienced heavy volatility in early trading after reporting its quarterly results.

So what: After yesterday's close, Emergent posted a fourth-quarter profit of $26.2 million, or $0.76 per share, versus the average analyst estimate of just $0.68 per share. Curiously enough, the stock opened Friday down 16%, only to spike quickly back up. At the time of publication, Emergent shares are off only about 2% on more than triple the average volume.  

Now what: I wouldn't read too much into today's wacky trading. Fundamentally, sales of Emergent's anthrax treatment BioThrax are booming, with management forecasting solid full-year earnings of $35 million to $45 million on a top line of $320 million to $340 million -- largely in line with analyst estimates. Wild, seemingly nonsensical price swings just come with the small-cap biotech territory, and investors would do well to keep this one in proper perspective.

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