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 ikkyu2 (99.45) Submitted: 8/6/2010 2:05:27 PM : Outperform Start Price: $45.01 NILE Score: -46.41

Nile just missed earnings - 0.19 EPS diluted, versus 0.23 expected; and the price took a 5% haircut on the news.Last year - 2Q 09 - was a miserable time for the broad economy, where NILE also made 0.19 EPS diluted. Y-o-y NILE made 0.34 in the preceding 12 months, and 0.32 in the months before.The real story here is international sales. NILE's website is best in class - we know this - and it's starting to catch on overseas. International sales made up about 15% of last quarter's revenue, and international sales are growing at a 28% annual rate (21% if you adjust for currency, but why would you?)I really like that number, I like the way they're aggressively going after global share, and I think they'll continue to execute. So I'm going back to this well.

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