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 Weatherford International (NYSE: WFT) fell 13% today after the company said it would be restating previous earnings.

So what: When the company released fourth-quarter earnings, it also dropped the bomb that it would be restating 2009 and 2010 financial statements. This news overshadowed a 27% jump in revenue to $3.71 billion and adjusted earnings of $0.30 per share.

Now what: Restatements are never good, and I've learned to run in the opposite direction when you hear they are coming. The company said it would need to adjust $225 million to $250 million of financial results from 2010 and earlier, most of it before 2008. Until we know exactly how these adjustments look, I would wait on the sidelines. It takes a long time for companies to regain a positive reputation after an adjustment like this, and shares could be in the doldrums for a while.

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