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 snack maker Diamond Foods (UNKNOWN:DMND.DL) fell 10% today after reporting earnings.

So what: Fiscal second quarter revenue fell 16% to $220.8 million, which was short of the $239.2 million analysts expected. On the bottom line, net income was $10.1 million, or $0.43 per share, but when you pull out one-time items the profit falls to $0.05 per share, a penny below expectations.  

Now what: The most concerning part of the report was the company's huge drop in revenue. Shares are trading at 21 times forward earnings, a price that's steep even for a company that's growing revenue at a good clip. I don't see a reason to buy shares here and would wait to re-evaluate until the company turns revenue around.

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