I'm a credit guy, not an equity guy. Two days ago I'd never heard of Blue Nile (NASDAQ:NILE) (I'm not the marrying type). But I read a long-thesis from an investor for whom I have an extraordinary amount of respect, I took a look at the company, and I like it. As a short.
My short thesis does not have the depth of quantititve analysis I put behind my credit theses, so don't expect that from this article. My short thesis is simple: The long thesis is wrong, once the error is corrected its apparent that the stock trades at far too high a multiple, and a back-of-the-envelope rough estimate of fair value is a share price of...
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