After the bell, Beazer Homes (NYSE: BZH) announced it's now being formally investigated by the SEC. According to the company, the SEC is investigating whether any "person or entity related to Beazer Homes has violated federal securities laws." Interestingly, the company is already involved in several lawsuits due to its practices in the mortgage-origination business. In addition, the company fired its chief accounting officer last month because he tried to destroy company documents. Add all these factors up and it seems pretty fishy.

As you probably expected, Beazer's stock was hit in after-hours trading -- currently trading at $17.70 per share vs. opening at $19.65 Monday. Stocks always slide when the announcement of an investigation by the SEC hits the wires because investors become nervous about the company's management's integrity.

Although the very successful hedge fund Moore Capital is involved in the stock, I think investors would be wise to avoid this stock until the clouds clear. While many value investors make tremendous returns betting on stocks under investigation or very out of favor, I think that game is way too risky for most retail investors.

In a 13-G filing made yesterday, hedge fund Moore Capital declared a 1.99 million share position in Beazer Homes (NYSE: BZH), good for roughly 5.1% of the company. Although Moore was started by legendary global macro trader Louis Bacon, there are now several different strategies and funds operating under the "Moore Capital" name. I'd argue that the Beazer position is attributable to some sort of value-oriented group at Moore, although Moore seems to have a pro-homebuilding macro-like thesis as the portfolio owns a position in the home builder ETF XHB according to the Stokpickr! page on the fund.

The value-thesis behind BZH seems to be rather clear, at least in my eyes. All of the multiples for the company make any contrarian-minded value investor salivate, especially the .57x book value multiple. However, yesterday's WSJ "Heard on the Street" column ($) made it clear that book value is losing its importance in signifying value in home builders because it is losing its accuracy. BloggingStocks's Zac Bissonnette gave an interesting take on the piece.