Stecyk

Blue Nile: A Classic Underpromise, Overdeliver Company

Hi Rob,

Thank you for your comment.

I don't disagree with your 63x times 2008 earnings or about 50 times 2009 earnings, which was referenced in the article. If the company can continue to grow earnings at 25% at year for the next few years, then I have no concerns.

Again, they are taking share away from other jewelry retailers. They have no significant online competition. So my view is that the brick and mortar retailers will continue to decline in value and some of that value will go to Blue Nile. Most of the value, however, will go to consumers.

It will be interesting to watch how the company performs over the next several quarters.

Best regards,
Kevin