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 patent troll Acacia Research (Nasdaq: ACTG) fell as much as 15% today after the company released better-than-expected earnings.

So what: In the second quarter, revenue rose 27% to $50.5 million and earnings per share came in at $0.43. Analysts had estimated $42.2 million in revenue and $0.24 in earnings per share.

Now what: The results were much better than expected and shares are now trading at 12 times forward earnings estimates. The results were fairly good today so I wouldn't be a big seller. With that said, this business can be very volatile so I'm not buying on the dip just because I don't want the risk associated with the licensing business.

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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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