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.

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