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: Shareholders in Ethan Allen Interiors (NYSE: ETH) awoke to a bed in disarray this morning, their shares a bedraggled heap, seemingly worth 12.5% less than they'd fetched the evening before. After downing a cup of joe, though, and rubbing the sleep from their eyes, shareholders may see that the damage is not as bad as it looks.

So what: A quick glance at Yahoo! Finance reveals that no one in the mainstream media is much interested in this story, so let me fill you in: Ethan Allen reported earnings after market close last night, and the news really wasn't all that bad. Sales grew more than 10% in comparison to last year's fiscal third quarter. Profits came to $0.12 per share, a nice surprise after last year's $0.03 loss.

Now what: Honestly, after reviewing the numbers I'm not sure what has investors so upset (aside from the stock price drop itself). So far this year, Ethan Allen has booked $0.76 per share in profit and has already earned more than the $0.60 analysts predicted it would earn over the course of the entire year. It's collected nearly $35 million in free cash flow, too (58% better than its GAAP-income statement would lead you to believe). Seems to me, the company's doing just fine -- and if you choose to defy the sell-off and buy the stock at today's new-and-improved, lower price, you should do just fine, too.

Is Rich right? Is Ethan Allen really cheaper than anyone suspects? Add it to your watchlist, and find out.