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 Chinese insurer CNinsure (Nasdaq: CISG) surged 30% in early trading today on news that its chairman and CEO, Yinan Hu, is leading a bid to take the company private.

So what: The buyout offer -- from a pair of investment firms, one of which is run by Hu -- values the company at roughly $19 per share and represents a 44% premium to its Friday closing price. The consortium already owns 34% of CNinsure's outstanding shares, but with the stock having shed about 50% of its value over the past seven months, Hu is finally taking matters into his own hands.

Now what: I'd be cautious about jumping in at this point. While 16% of upside remains between the current price and the buyout offer, it also means that Mr. Market is still a tad skeptical of the deal actually getting done. When you couple the huge downside that exists if things fall through with CNinsure's questionable long-term investment appeal, passing on the stock seems like an easy decision.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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