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 independent energy company SM Energy (NYSE: SM) got drilled by investors today, losing as much as 11% in intraday trading on heavier-than-average volume.

So what: The bottom line for SM Energy is that the first-quarter bottom line just didn't measure up for investors. For the quarter, the company reported $0.42 in adjusted earnings per share compared to $0.45 last year and a $0.44 estimate from Wall Street. The miss came even as the company reported higher production and lower costs than it had forecast.

Now what: The drop in SM's shares may seem a bit drastic, but it may be understandable considering the fiery run-up the stock has had recently. Between late last year and today, the stock has nearly doubled, bringing its 2011 earnings multiple to a hefty 34. With profits coming in softer than expected, investors may be reconsidering what they're willing to pay for the stock.

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