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 biofuels product maker Amyris Inc (NASDAQ:AMRS) popped as much as 21% early in trading today before dropping to just a 2% gain late in the day.

So what: The reason for the early pop was an announced collaboration and development agreement with chemical giant BASF. Amyris will used its technology to develop a specific microorganism that can create a target molecule for BASF. Management also said it expects to continue to work with BASF in the future on other programs and, potentially, joint ventures.  

Now what: It's a good sign for any of these new microorganism based companies to see success with large partners, who provide the backing they need to grow. We don't know what the financial impact of the BASF deal will be, and that may be one reason shares came down to earth today. I consider this an incremental positive, and if you're bullish on Amyris it's another reason to like the company's future.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.