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 Pilgrim's Pride (NYSE: PPC) fell as much as 11.4% today after the company announced a rights offering to shareholders.

So what: The company is offering shareholders the right to purchase up to approximately 44.44 million shares of stock for $4.50 per share. Proceeds to the company will be about $200 million and shareholders will be assigned shares on a pro-rata basis.

Now what: Shares have recovered slightly because this offering isn't necessarily dilutive to current shareholders, it will just cost them some money. At the current price of $5.90 per share, I would say the offering should be exercised by shareholders, but there are still some details to be sorted out. We don't know exactly what the company will use the money for or exactly what the exercise date will be. Until then I would hold tight on deciding whether to buy your rights to this stock.

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