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 molecular diagnostic company Cepheid (NASDAQ: CPHD) rallied as much as 10% following the release of its preliminary fourth-quarter results and providing an update on the availability of its products.

So what: For the fourth quarter, Cepheid now anticipates that it will earn $0.10-$0.12 on a non-GAAP basis, which is on the high end of its previous forecast, with revenue of approximately $92 million, which was below its previous forecast. Wall Street had actually been expecting Cepheid to report a loss of $0.02, on $93.6 million in revenue. Cepheid also commented that new manufacturing facilities which took longer to bring online than expected, should remedy shortages of its Xpert diagnostic tests very soon.

Now what: As I opined in late July, I am a big fan of the various diagnostic tests that Cepheid's Xpert system can cover, and I love the technology, but the valuation keeps me from being too excited about the stock in general. This year will be the first time that Cepheid will be turning the corner to profitability, so at more than 250 times forward earnings, I can't say that value investors will be piling into the company anytime soon. For now, I'm more than happy watching and waiting on the sidelines.

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