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 Energy XXI (OTC:EXXIQ) fell 10% today after reporting disappointing fiscal second-quarter results.

So what: Production was up 20% from the previous quarter as operations recovered from a hurricane, but EBITDA fell from $225.6 million a year ago to $198.8 million this quarter. That drove earnings per share of just $0.48, which fell $0.20 short of estimate.  

Now what: The earnings miss was huge but there may still be some upside with this stock. It trades at just 7.3 times forward estimates and the company is focused on growing reserves and production. With oil prices rising I think that's a long-term positive and the stock can move higher from here.

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