Diamond retailers are trading higher over the past couple of days after Zale's (ZLC) beat on earnings. Matter of fact, Zale's is up almost 50% since the company reported on August 28. As we started researching the category, we've come to realize that not all diamond retailers are created equal. In the case of Blue Nile (NILE), it is facing serious headwinds going forward. We see the bounce in NILE's shares as an opportunity to initiate a short a position.
Blue Nile is thought of as the Amazon (AMZN) of online jewelers. The company has been in business since 1999, selling diamonds and fine jewelry. Its principal business is diamond...
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