Comments on: Blue Nile Diamonds – All That Glitters Isn’t Gold http://zachstocks.com/2009/08/blue-nile-diamonds/ Dynamic Investments for Exceptional Traders Thu, 18 Mar 2010 20:23:35 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Michael Tannenbaum http://zachstocks.com/2009/08/blue-nile-diamonds/comment-page-1/#comment-7668 Michael Tannenbaum Thu, 13 Aug 2009 17:05:32 +0000 http://zachstocks.com/?p=2043#comment-7668 I would consider looking at this company from a ROIC perspective. It has an unusually high ROIC due to its business model and will likely trade at an elevated valuation because of that. I dont disagree with your analysis but the company can continue taking market share from the thousands of mom-and-pop jewelers in the US over the long term even if consumers have to deleverage their balance sheets and will be spending less on discretionary items. I would think that there are a lot of other business models with overpriced stocks that would be more convincing shorts than NILE. Please keep up the great posts. I really enjoy the site. I would consider looking at this company from a ROIC perspective. It has an unusually high ROIC due to its business model and will likely trade at an elevated valuation because of that. I dont disagree with your analysis but the company can continue taking market share from the thousands of mom-and-pop jewelers in the US over the long term even if consumers have to deleverage their balance sheets and will be spending less on discretionary items.

I would think that there are a lot of other business models with overpriced stocks that would be more convincing shorts than NILE.

Please keep up the great posts. I really enjoy the site.

]]> By: Zachary Scheidt http://zachstocks.com/2009/08/blue-nile-diamonds/comment-page-1/#comment-7664 Zachary Scheidt Wed, 12 Aug 2009 17:21:44 +0000 http://zachstocks.com/?p=2043#comment-7664 What will it take for retail stocks to start giving up recent gains? While the extended prices imply excessive risk, there has to be some catalyst which will ignite the next move lower. What will it take for retail stocks to start giving up recent gains? While the extended prices imply excessive risk, there has to be some catalyst which will ignite the next move lower.

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