Blue Nile, Inc. (NASDAQ:NILE)

CAPS Rating: 2 out of 5

An online retailer of diamonds and fine jewelry, Blue Nile also provides an education for consumers on all sorts of rocks and rings.

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Player Avatar jmhunnel (35.51) Submitted: 4/25/2010 4:06:12 PM : Underperform Start Price: $55.78 NILE Score: +50.15

Blue Nile is trading at around 50 times 7-year trailing earnings and has a book value of a few bucks a share. Where is the value coming from? Does the company have precious metal reserves on the books at less than market value? Does anyone know?

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