I was on fmylife.com and came across this post (click on it to view it more clearly!):
So usually participants will post the awful things that happened in their lives on the site. And I was wondering what was so bad about the guy beside you saying "nice watch".
I then did a search on urbandictionary.com and I found the clarification to my bewilderment:
Phrase muttered at a urinal to make small talk or to cover for the fact that the person saying it has just looked at your junk.
And now we know! The website also says that you can use the phrase to mess with the person who picked the urinal next to yours. Boys, useful info for you? :)