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: SandRidge Energy's (UNKNOWN:SD.DL) stock was up 10% by the mid-afternoon. While some of that surge is being fueled by the price of oil, which reserved earlier losses and is now up 2% on the day, it's not the only thing fueling the stock for once. Instead, today's move is largely being fueled by news that well-known investor Prem Watsa bought more than 18 million shares of SandRidge last quarter. 

So what: Prem Watsa, who is the CEO of Toronto based Fairfax Financial Holding, has been called the Canadian Warren Buffett due to his investing success. He uses Fairfax as an investment holding company to invest in companies that he thinks are selling at a discount to its real value. So, in loading up on SandRidge Energy it suggests to the market that Watsa sees a lot of value in its stock. That's pretty clear by the fact that he's already one of the company's largest shareholders as he now owns more than 10% of its outstanding shares.  

Now what: Having an investor like Watsa bulk up on his position in SandRidge Energy is a big sign of confidence in the company. His view is that the stock is currently selling at a discount and therefore should earn a strong long-term return. He has a history of finding value as his investing success has led to Fairfax's book value increasing by 23% compounded annually over the past 27 years. As evidenced by his recent purchase, he thinks that buying more of SandRidge Energy's stock will enable him to keep up his success.