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 supertanker owner Frontline (NYSE: FRO) sank 10% in intraday trading today after issuing a particularly grim industry outlook.

So what: After reporting that its first-quarter income fell a whopping 81%, CEO John Fredriksen signaled that the company would likely sell ships and focus instead on strengthening its balance sheet in order to weather a prolonged industry downturn. With the shares slumping to seven-year lows on the news, it's obvious that the forward-looking, growth-oriented Mr. Market is also giving up on any type of near-term turnaround.

Now what: I wouldn't throw in the towel on Frontline just yet. "The target is not to be the largest owner of tonnage, but to seek the highest return on the investments over the cycle," the company said. Although there's no denying that the tanker market is currently one gloomy place to be, Frontline's laser-like focus on financial flexibility should provide plenty of downside protection, while preserving upside opportunities, for longer-term investor/owners.

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