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 Power Solutions International (NASDAQ:PSIX) jumped as much as 10% today after reporting earnings.

So what: Sales were up 25% from a year ago to $64.6 million, and the company had a net loss of $10.0 million, or $0.97 per share. However, adjusting for warrant adjustments the company made $2.6 million, or $0.24 per share in the quarter, which was two cents ahead of estimates.  

Now what: Management said that oil and gas applications are driving growth, particularly in heavy-duty power systems that can use wellhead gas. Growth is expected to continue in the future, but investors should keep an eye on value as well. Shares are trading at 50 times next year's estimates, which is too steep for me even with solid growth in energy markets.