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 oil & gas company Vaalco Energy (NYSE:EGY) fell 13% today after reporting earnings.

So what: Revenue fell 21% from a year ago, to $53.6 million, and the company went from an $8.7 million profit to an $18.9 million loss. On an adjusted basis, the company lost $0.20 per share, when analysts expected a $0.32 per share profit.  

Now what: The biggest problem was the drop-off in oil sales, which fell 20% from a year ago. The company has some interesting developments in the pipeline, but until they actually start producing revenue and profits, this is a risky stock. I'm going to stay away for now and see how developments go this year.

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