Shares of Bidz.com (NASDAQ: BIDZ) are down around 4% today after the company announced fourth quarter results that can only be described as strange.Where to begin? Sales for the fourth quarter of 2008 were $35.1 million, compared with $63.2 for the same quarter in 2007. That's a decline of about 44% but for the full-year, sales were up 10.8%. The real juice, though, was this little nugget buried at the very bottom of the earnings release under the auspicious headline "2008 Highlights and Accomplishments":
The Company was notified recently by the SEC of a formal investigation relating to certain aspects of its inventory accounting practices, as well as other matters. The Company intends to fully cooperate with the SEC regarding this matter. The Company remains confident its inventory accounting is correct and in full accordance with GAAP.
Just so you know: A formal investigation is a big deal.
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