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 genetic analysis technologist Pacific Biosciences of California (Nasdaq: PACB) mutated this morning, falling as much as 23.4% on heavy trading.

So what: The second-quarter report, released last night, was full of surprises: $10.6 million of revenue beat the pants off the $4.1 million average analyst estimate, and the $0.42 net loss per share was also smaller than expected. But all the good news was overshadowed by an immediate downgrade: JPMorgan reduced Pacific Biosciences from a buy to a hold with a new share price target at $10, down from $17.

Now what: I don't have any color commentary on why JPMorgan suddenly cut this stock on the eve of a terrific report. What I do know is this: Shares have fallen by 53% over the last six months, the company is finally shipping third-generation gene sequencing systems to revenue-making markets (which is why sales were so much higher than expected), and 97% of the 175 CAPS players with an opinion on the stock see it bouncing back. This Rule Breaker looks like a high-octane alternative to bigger and slower-moving rivals Life Technologies (Nasdaq: LIFE) or Illumina (Nasdaq: ILMN).

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