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 oil and gas explorer Cobalt International Energy (NYSE: CIE) fell 12% today after releasing earnings.

So what: Cobalt didn't report any revenue and said it lost $47 million, or $0.12 per share, in the third quarter. Analysts had expected a loss per share of $0.07.

Now what: The loss was larger than expected because of a $29 million impairment charge from two wells the company drilled. Estimates don't really mean much with a company like this, but I'm taking a very cautious view after this report. Cobalt may be a winner when it begins generating revenue, but the risk is just too high for this Fool to jump on board.

Interested in more info on Cobalt International Energy? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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