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: Pacific Biosciences of California (Nasdaq: PACB) dropped 12% in intraday trading today after a news article on hot stock Illumina (Nasdaq: ILMN) suggested industry competition is intensifying.

So what: The article indicated Pacific Biosciences has built a lot of anticipation for its new products. However, it also called Illumina "the go-to stock for genomics" and described competitor Life Technologies as "rejuvenated." The article went on to note that heavyweights General Electric and IBM are indicating they may enter the market.

Now what: The article also made negative comments about end market demand, noting that talk of more spending on genomics has been going on for quite a while. It also pointed out that the largest markets for genomics products are academic labs and research hospitals that rely heavily on government funding. Given the need to cut the Federal deficit, demand could fail to grow as hoped.

Interested in more info on Pacific Biosciences? Add it to your watchlist by clicking here.