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 life sciences company Genomic Health (Nasdaq: GHDX) shot up as much as 16% after the company reported its second-quarter results.

So what: For the quarter, Genomic Health reported moderate revenue growth from its Oncotype DX breast cancer and colon cancer tests which help determine treatment paths for patients. Revenue jumped 13% to $57.6 million with the company reporting a profit of $0.06. Although revenue slightly missed Wall Street's mark of $58.3 million, EPS came in $0.08 higher than analyst's expected $0.02 loss. We also received some very rare guidance, with Genomic Health predicting total Oncotype DX results delivery of 75,000-77,000 units, and revenue of $230 million-$240 million with net income of $5 million-$8 million ($0.16-$0.25). The Street had been forecasting revenue for $238.9 million with a profit of $0.01 for fiscal 2012.

Now what: This is a case where I love the concept, the product, and the earnings beat, but I absolutely can't stand the stock. Even with the projections for $0.16-$0.25 in EPS, the company is trading in a range of 143-225 times this year's earnings. What's more, Genomic Health is valued at 78 times forward earnings and a staggering 48 times cash flow. Again, I like the product, but the valuation being placed on this company just doesn't make sense.

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