Posts for Ticker ‘NILE’

Online Jewelry Sales Heating Up? (NILE)

Generally speaking, it takes one significant analyst call to move a stock 10%.  Yet today, that is exactly what we are seeing in shares of Blue Nile Inc. (NASDAQ: NILE).  Citigroup raised its rating on the online jewelry leader to Buy from Hold this morning.  But where this gets interesting is determining how much better the business is doing.
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Posted on: July 14, 2009 – 1:53 pm in Analyst Calls, Luxury,

Top Analyst Upgrades (BK, NILE, LLL, NTRS, PRU, VMW, YHOO)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Tuesday morning:

Bank of New York Mellon (BK) Raised to Buy at BofA/Merrill.
Blue Nile (NILE) Raised to Buy at Citigroup.
L-3 Communications (LLL) Raised to Overweight at JP Morgan.
Northern Trust (NTRS) Raised to Buy at BofA/Merrill.
Prudential (PRU) Raised to Overweight at JP Morgan.
VMware (VMW) Raised to Hold at Jefferies.
Yahoo! (YHOO) Started as Buy at Canaccord.

JON C. OGG

Posted on: July 14, 2009 – 6:32 am in Analyst Calls, , , , , , ,

Top Analyst Downgrades (BCS, NILE, ED, MVL, RBS, SRE, UBS)

These are the top pre-market analyst downgrades or cautious calls we have seen from Wall Street this Wednesday morning with more than two hours until the market opens:

Barclays (BCS) Cut to Sell at UBS.
Blue Nile (NILE) Cut to Negative at Susquehanna.
Consolidated Edison Inc. (ED) Cut to Hold at Jefferies.
Marvel Entertainment (MVL) Cut to Market Weight at Thomas Weisel.
Royal Bank of Scotland (RBS) Cut to Sell at UBS.
Sempra Energy (SRE) Cut to Hold at Jefferies.
UBS (UBS) Cut to Hold at Societe Generale; Raised to Hold from Sell at ING.

JON C. OGG

Posted on: May 6, 2009 – 6:17 am in Analyst Calls, , , , , , ,

Top Analyst Downgrades (AMT, AXA, NILE, CA, FDS, IBM, IBKR, ICE, NOVL, SBAC, VIA)

These are the top analyst downgrades and cautious calls we have seen from Wall Street analysts this Monday morning:

American Tower (AMT) Cut to Sector Perform at RBC.
AXA (AXA) Cut to Underweight at JPMorgan.
Blue Nile (NILE) Cut to Hold at Citigroup.
CA Inc. (CA) Cut to Hold at Jefferies.
FactSet (FDS) Started as Sell at Auriga.
IBM (IBM) Cut to Hold at Canaccord Adams.
Interactive Brokers (IBKR) Cut to Underperform at KBW.
IntercontinentalExchange (ICE) Cut to Underperform at KBW.
Novell (NOVL) Cut to Hold at Jefferies.
SBA Communications (SBAC) Cut to Sector Perform at RBC.
Viacom (VIA) Cut to Equal Weight at Barclays.

JON C. OGG

Posted on: April 6, 2009 – 7:33 am in Analyst Calls, , , , , , , , , , ,

Looking For “Value” In Blue Nile (NILE)

Blue Nile Inc. (NASDAQ: NILE) has been battered during the recession.  While its woes may be far from over, it seems that at least one analyst is trying to call a bottom.
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Posted on: February 23, 2009 – 9:51 am in Analyst Calls, Consumer Goods, Internet, Luxury, Retail, Value Investing,

52-Week Low Club (AXP, COF, NILE, CLX, RDEN, FDX, HOG, ISRG, KF, MSCC, PII, RAX, RNWK, STX)

Burning_money_pic_3Today’s market looked more like an advanced yo-yo session rather than a regular stock market trading day.  Since stocks gapped down so much, there were many new names on the list of 52-week lows.  What is interesting is that many other stocks hit 52-week lows but bounced back to being positive on the day.

  • American Express (NYSE: AXP) and Capital One (NYSE: COF) both graced the list of lows as GE’s consumer losses only added fuel to the fire.
  • Blue Nile Inc. (NASDAQ: NILE) tankola, again.  Forget Valentine’s Day this year.
  • Clorox Co. (NYSE: CLX) burns investors’ eyes as bad as it burns its client’s eyes.
  • Elizabeth Arden (NASDAQ: RDEN) keeps falling after the bad news from it and its peers over the last week and a half.  Brittney Spears can’t help.
  • FedEx Corp. (NYSE: FDX) keeps dropping. 
  • Harley Davidson (NYSE: HOG) caught another case of HAGS and is believed to be in trouble all year after earnings.
  • Intuitive Surgical (NASDAQ: ISRG) keeps getting pounded.  Down close to 70% from highs now.  Leonardo DaVinci would now sue over the use of his name.
  • The Korea Fund (NYSE: KF) was down almost 7%.  We don’t like to put country funds or ETF’s today, but that Kim Chee from last night just didn’t sit well today.
  • Microsemi (NASDAQ: MSCC) on earnings warning.
  • Polaris Industries (NYSE: PII)… weak HOG sales from Harley, weak motorcycle and snowmobile relative?  Works every time.
  • Rackspace Hosting (NYSE: RAX)… Racking the Rackers, in the server room….
  • RealNetworks (NASDAQ: RNWK), a surprise but think of peers.  And when was the last time you bought anything from them?
  • Seagate Technology (NYSE: STX) again… with the earnings it put up this week, you can call it Floodgate.

Jon C. Ogg
January 23, 2009

Posted on: January 23, 2009 – 4:14 pm in HI/LOW, Trading Alert, , , , , , , , , , , , , ,

Top Pre-Market Analyst Upgrades (AMZN, AMAT, NILE, CECE, DCP, GPN, RHT, AUY, YRCW)

These are some of the top pre-market analyst upgrades we have seen this Thursday morning:

  • Amazon.com (AMZN) Raised to Overweight at Barclays.
  • Applied Materials (AMAT) Raised to Buy at Citigroup.
  • Blue Nile (NILE) Raised to Overweight at Barclays.
  • CECO Environmental (CECE) Started as Buy at Cantor Fitzgerald.
  • DynCorp (DCP) Started as Buy at Stanford.
  • Global Payments (GPN) Raised to Buy at Goldman Sachs.
  • Red Hat (RHT) Raised to Buy at Jefferies.
  • Yamana Gold (AUY) Started as Outperform ar Raymond James.
  • YRC Worldwide (YRCW) Raised to Neutral at JPMorgan.

Jon C. Ogg
December 4, 2008

Posted on: December 4, 2008 – 7:58 am in Analyst Calls, , , , , , , , ,

Top Pre-Market Analyst Downgrades (AHII, NILE, FOSL, HNT, HSNI, IPCS, LPX, MCHP, PALM, PPCO, RJF, PCU)

Down_arrow_redThese are some of the top pre-market analyst downgrades we are seeing this Wednesday morning with more than two hours until the market opens:

  • Animal Health (AHII) Cut to Neutral at Piper Jaffray.
  • Blue Nile (NILE) Cut to Underweight at JPMorgan.
  • Fossil (FOSL) Cut to Underweight at JPMorgan.
  • Health Net (HNT) Cut to Hold at Deutsche Bank.
  • HSN (HSNI) Started as Underweight at JPMorgan.
  • IPCS (IPCS) Cut to Hold at Jefferies.
  • Louisiana-Pacific (LPX) Cut to Neutral at Banc of America.
  • Microchip Technology (MCHP) Cut to Sell at Goldman Sachs.
  • Palm (PALM) Cut to Market Perform at Morgan Keegan.
  • Penwest Pharmaceuticals (PPCO) Cut to Neutral at Baird.
  • Raymond James Financial (RJF) Cut to Underperform at Wachovia.
  • Southern Copper (PCU) Cut to Sell at Deutsche Bank.

Jon C. Ogg
November 5, 2008

Posted on: November 5, 2008 – 7:40 am in Analyst Calls, , , , , , , , , , , ,

Blue Nile Shows Zero Visibility (NILE)

Blue_nile_logoBlue Nile, Inc. (NASDAQ: NILE) has posted its quarterly earnings, and it looks like the results are probably not as bad as many would have guessed.  The leading online retailer of diamonds and fine jewelry reported net income of $2.3 million, or $0.15 per share.  This is down from $3.0 million, or $0.18, last year.  Net sales were $65.4 million, a decrease of 2.9%, from $67.4 million.

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Posted on: November 4, 2008 – 4:32 pm in Earnings, Internet, Retail,

Top 10 Pre-Market Analyst Calls (ANF, ASTI, ASMI, NILE, CHU, CSX, DPS, LLTC, QCOM, WOOF )

These are ten of the analyst calls we are focusing on this Tuesday morning in pre-market trading:

  • Abercrombie (NYSE: ANF) cut to Market Perform at FBR.
  • Ascent Solar (NASDAQ: ASTI) started as Neutral at Jefferies.
  • ASM Intl NV (NASDAQ: ASMI) started as Underperform at Jefferies.
  • Blue Nile (NASDAQ: NILE) Started as Underweight at Thomas Weisel.
  • China Unicom (NYSE: CHU) cut to Neutral at Credit Suisse.
  • CSX Corp (NYSE: CSX) cut to Neutral at UBS.
  • Dr Pepper Snapple (NYSE: DPS) started as Underweight at JP Morgan.
  • Linear Tech (NASDAQ: LLTC) cut to Neutral at UBS.
  • Qualcomm (NASDAQ: QCOM) Started as Buy at Goldman Sachs.
  • VCA Antech (NASDAQ: WOOF) Started as Neutral at Piper Jaffray.

Jon C. Ogg
June 3, 2008

Posted on: June 3, 2008 – 6:48 am in Analyst Calls, , , , , , , , , ,

Top 10 Pre-Market Analyst Calls (ANR, NILE, ENER, IFX, LH, NVS, SOV, TSCO, WY, YGE)

These are ten of the analyst calls we are focusing on this Monday morning in pre-market trading:

  • Alpha Natural Resources (NYSE: ANR) Raised to Overweight at Morgan Stanley.
  • Blue Nile (NASDAQ: NILE) started as Hold at Deutsche Bank.
  • Energy Conversion (NASDAQ: ENER) started as Equal Weight at Lehman Brothers.
  • Infineon (NYSE: IFX) cut to Hold at Citigroup.
  • Laboratory Corp. (NYSE: LH) Started as Overweight at Morgan Stanley.
  • Novartis (NYSE: NVS) started as Overweight at JPMorgan.
  • Sovereign Banc (NYSE: SOV) raised to Outperform at KBW.
  • Tractor Supply (NASDAQ: TSCO) raised to Buy at UBS.
  • Weyerhaeuser (NYSE: WY) cut to Hold at Deutsche Bank.
  • Yingli Green Energy (NYSE: YGE) raised to Buy at Citigroup.

Jon C. Ogg
June 2, 2008

Posted on: June 2, 2008 – 6:37 am in Analyst Calls, , , , , , , , , ,

Can Blue Nile Earnings Outshine Short Sellers? (NILE)

Today after market close we’ll get to see the earnings out of Blue Nile Inc. (NASDAQ: NILE). Blue Nile has suffered a miserable time of it since the highs last year.  They have been decimated, they have been more than halved.

Estimates from First Call for the online retailer of fine jewelry for this quarter are $0.14 EPS on $68.52 million in revenues. Estimates for next quarter are $0.22 EPS on $77.84 million in revenues. Estimates for fiscal Dec-2008 are $1.06 EPS on $352.69 million in revenues.

Analysts have an average price target of $52.00.  That price target has come down significantly.  Over the last 90-days, we’ve also seen a fairly large reduction in earnings estimates for this quarter and next; and estimates have been brought in for 2008 and 2009.  Options traders appear to be braced for a move of more than $5.00 in either direction.

Based upon the forward valuations and based on the current state of the economy, this one also no longer looks cheap on a forward multiple analysis.  The good news is that its balance sheet is in fine shape, but the flip side is that the stock trades at almost 12-times tangible book value.

As far as the chart, well shares used $40+ as support in both February and March.  Shares are currently close to the 50-day moving average of $47.68, and the 200-day moving average is far north at $67.64.

Lastly, we’d like to note that if Blue Nile doesn’t show some horrific numbers despite the concerns and high valuations, the short interest is massive here.  With 7.95 million shares carried in the short interest, that represents close to 59% of the float and is a days-to-cover ratio of roughly 20.  So anything "not so much more bad" could cause a major short covering session. 

Blue Nile’s shares were down about 3.5% at $46.14 in early afternoon trading; its 52-week range is $38.35 to $106.16.

Jon C. Ogg
May 6, 2008

Posted on: May 6, 2008 – 11:53 am in Earnings, Internet, Luxury,

Tiffany Rescues Luxury (TIF, NILE, ZLC, HWD)

This morning, Tiffany & Co. (NYSE: TIF) reported earnings.  While results were down more than 15% from last year, its adjusted earnings of $1.27 EPS ($0.89 after loan and other charges) beat analysts estimates with First Call showing consensus was $1.21 on EPS.  Revenues were in-line with expectations at $1.05 Billion.

The net earnings included a $0.22 charge that was made to Tahera Diamond Corp., which has sough creditor protection earlier this year. It also included $0.09 charges for watch discontinuations. One change it is making is its LIFO accounting (last in first out) incost recognition and will use an average cost accounting method.

Its total retail sales were up 4% year over year, and same store sales were down at -1%.  Tiffany is maintaining a cautious US-stance for 2008 but noted robust growth internationally.  Its 2008 forecast is $2.75 to $2.85, which was above $2.49 or $2.50 consensus estimates.  It also put sales up 10% to approximately $3.23 Billion, and estimates were $3.18 Billion.

Tiffany earnings on a net-net basis were great for the current environment.  The luxury jeweler wouldn’t have gotten such a great market reward like this morning if this was a year ago.  But right now coming close to estimates is good enough.  And beating estimates is even better.  Shares are up about 14% to $44.00 shortly after the open.

This is also helping some other jewelry players who have seen hard times.  Shares of Zale Corp. (NYSE: ZLC) are up 2.5% to $21.81, and its 52-week trading range is $12.48 to $29.22.  Blue Nile Inc. (NASDAQ: NILE) is the real winner here with a 10% pop to $51.70, and its 52-week trading range is $38.35 to $106.16.  Harry Winston Diamond Corp. (NYSE: HWD) is up less than 1% at $23.65 this morning, and its 52-week trading range is $21.78 to $45.18.

Jon C. Ogg
March 24, 2008

Posted on: March 24, 2008 – 8:58 am in Earnings, Luxury, , , ,

This Week’s Key Stock Buybacks & Repurchases (SYK, NILE, TDC, WW, CPWR, CE, EFX, VARI)

While earnings season is slowly winding down and while the economy is obviously cooling, we still have many large and small companies alike with solid balance sheets or that have extra cash to deploy on hand.  These are some of the key share buybacks we have seen this week.

Stryker (NYSE: SYK) announced a general $750 million for share buybacks for general corporate purposes and to offset dilution from options. This is one of the larger buyback plans announced, but it is small in comparison to its market cap of $27.93 billion.

Blue Nile (NASDAQ: NILE) approved a $100 million share buyback. With its poor guidance, buybacks may only partially help a growing problem. The current market cap sits at about $688.11 million.

Teradata (NYSE: TDC) announced a $250 million stock buyback plan. With positive 2008 guidance, future earnings per share should grow. The current market cap is $4.27 billion.

Watson Wyatt (NYSE: WW) announced a $100 million stock buyback plan.  The company noted that the buybacks will help offset dilution from employee benefit plans.  Its current market cap is $2.21 billion

Compuware (NASDAQ: CPWR) announced a $750 million buyback plan to reduce the balance of outstanding common shares to 200 million. They currently have 281.4 million shares outstanding. The current market cap is $2.27 billion.

Celanese (NYSE: CE) Board approved a $400 million share buyback. The CEO noted that the buyback demonstrates their commitment to delivering value to shareholders while retaining financial flexibility. The current market cap is $6.04 billion.

Equifax (NYSE: EFX) announced a $250 million share buyback approval. It is yet another in a series of buybacks valued at about $1.08 billion since 2004. The current market cap is $4.53 billion.

Varian (NYSE: VARI) Board approved a $100 million share repurchase program. The buybacks could boost an already healthy stock. The current market cap is $6.53 billion.

Rachel Lopez
February 15, 2008

Posted on: February 15, 2008 – 1:15 pm in Stock Buybacks, , , , , , , ,

Blue Nile, Red Slaughterhouse (NILE)

Blue Nile Inc. (NASDAQ: NILE) is seeing a total smack-down in after-hours trading.  The Seattle-based online jewelry retailer said Q4 net income rose considerably to $7.54 million which translates to $0.45 EPS.  This is up from $5.75 million, or $0.35 in Q4-2006, and analysts at First Call had consensus at $0.44 EPS.  NILE’s sales increased 23% to $111.9 million from $90.7 million, and First Call has estimates at $113.15 million.

While earnings were acceptable, the guidance is horrible.  For the first quarter of 2008, Blue Nile expects $0.11 to $0.14 EPS on relatively flat net sales compared to the Q1-2007 sales of $67.91 million.  Those won’t cut it, and even though we have been critical about traders not pricing in any slowdown this is just painful.  First Call has estimates at $0.23 EPS on $82.2 million.  Ouch!

Blue Nile also made a key change that analysts and traders don’t like, particularly as the economy is softening.  It named President Diane Irvine to the additional role of CEO to replace Mark Vadon, who was named executive chairman.

  • One value manager recently noted the chances for much higher prices at THE VALUE INVESTING CONGRESS, although that is looking farther and farther from reality as of today.

This one is uglier than a leathery neck in after-hours trading. Shares closed down 2.5% today at $53.85 in regular trading and shares are down 21% to $42.43 in after-hours trading.  The 52-week trading range is $37.85 to $106.16.

Blue Nile authorized an additional $100 million to repurchase shares of its common stock over the next 24 months and that takes the total approved buyback plan up to $150 million.  That may help stabilize the stock ahead when it chooses to buy stock on weakness, but it’s doing nothing today as investors don’t really think of web retailers as being big buyers of their own shares. 

Jon C. Ogg
February 12, 2008

Posted on: February 12, 2008 – 5:26 pm in Earnings, Internet, ,

Top 10 Pre-Market Analyst Calls (AEM, NILE, BP, GLDN, PCZ, MXIM, NMX, OXY, QELP, BRCD, WDC, STX, ELX, RVBD)

These are not the only analyst and research notes out there affecting stocks the morning, but below are the top research calls that 24/7 Wall St. is focusing on in pre-market trading this Wednesday:

  • Agnico-Eagle Mines (AEM) raised to Buy at Merrill Lynch.
  • Blue Nile (NILE) raised to Buy from Hold at Citigroup.
  • BP plc (BP) downgraded to Neutral from Overweight at J.P.Morgan.
  • Golden Telecom (GLDN) downgraded to Neutral from Overweight at J.P.Morgan.
  • Maxim Integrated (MXIM) raised to Buy from Hold at Citigroup.
  • NYMEX Holdings (NMX) raised to Buy from Hold at Deutsche Bank.
  • Occidental Petroleum (OXY) raised to Overweight at Morgan Stanley.
  • Quest Energy Partners (QELP) off quiet period: started in coverage as Outperform at FBR, as Outperform at RBC Capital Markets and as Outperform at Wachovia.
  • Petro-Canada (PCZ) downgraded to Underweight at Morgan Stanley.
  • BANC OF AMERICA neutral on many tech names: Brocade (BRCD), Seagate (STX) & Western Digital (WDC) both started as Neutral.  Riverbed Tech (RVBD) started as Neutral. Emulex (ELX) started as BUY.

Jon C. Ogg
December 19, 2007

Posted on: December 19, 2007 – 8:02 am in Analyst Calls, , , , , , , , , , , , , ,

Holiday 2007 E-Commerce Winners And Losers

comScore today released data that shows households with incomes under $50,000 are not lifting their online spending much from the holiday season last year. Sales from this demographic group are up only 10%.

For people from households above $100,000, the increase is 28%. That is likely to create some big winners and losers in the e-commerce sector.

Wal-Mart’s (WMT) online business is not likely to be helped. Neither is Target’s (TGT). Deep discounter Overstock (OSTK) probably gets beaten up as well. The online businesses for Macy’s (M) and Sears (SHLD) are not likely to be helped.

RedEnvelop (REDE) may be in for a good holiday period. Ditto Blue Nile (NILE)

Douglas A. McIntyre

Posted on: December 16, 2007 – 12:30 pm in Internet, , , , , , ,

Is Overstock.com A Hidden Value Stock? One Fund Manager Thinks So (OSTK, NILE, AMZN)

There was an interesting event this week in New York City that was attended and covered by 24/7 Wall St., and that was the 3rd annual VALUE INVESTING CONGRESS.  Fund managers, investment advisors, and hedge fund managers gave numerous presentations on Wednesday and Thursday of this week.  Many VALUE STOCKS were covered.

Lisa Rapuano, portfolio manager and founder of Lane Five Capital Management, discussed several key value stocks and gave the notion that one of the best screens in finding value stocks is by searching the list of "new lows" (similar to our own "52 Week Low Club" we issue daily), and then looking for the companies that can avoid "going to zero."  When she presented Overstock.com (NASDAQ:OSTK), there were many expressions of surprise from the large audience at the Value Investing Congress.

What was interesting was that she also noted how she was an Amazon.com (NASDAQ:AMZN) loyalist that buys many items from the online e-tail and retail giant.  She noted how Overstock.com was a stock that back when her firm started screening it was hitting new daily lows and had all the recipes in place to go to zero.  But then she noted how controversial CEO Patrick Byrne was now being kept at bay by the fairly new President & COO Jason Lindsey being thought of as "adult supervision."  She also noted how the company blew out its old stale inventory without concern of the immediate charges so that it could focus on longer-term turnaround plans, noted how the company was able to raise cash via a financing (which surprised her), how the company trashed the old crummy ad campaign, and how it has been able to focus on a more attractive inventory mix and product offering that could fill a niche that Amazon.com wasn’t in.

In the presentation, she also described a site visit to Overstock.com’s facilities, noted insider ownership and a high a short interest, and had many tongue-in-cheek comments for believers and skeptics alike.  She also noted how difficult it was to make that decision and to evaluate the stock because its financial losses at the time were such that it wouldn’t fit into most VALUE INVESTING screens.  This is also not a brand new investment or a breaking call as Lane Five has been in the position, but this was a considerable surprise to the audience (and to yours truly).

One of the similar stocks that Rapuano rode up was Blue Nile Inc. (NASDAQ:NILE) as a pick from the prior year, and it sounded like Lane Five has lightened up considerably in that position.  But she did note that before the recent sell-off there that the company’s internal performance was at the higher-end of her best case scenario from the start, and she noted that Blue Nile’s stock could actually reach the vicinty of $150 per share if the company can fully execute on its plan.  So Lisa Rapuano isn’t treading into an entirely new space, and I sure didn’t get any impression that she was making any hasty decisions.

As reminder, opinions are opinions.  Sometimes they work quite well and sometimes they don’t.  I didn’t hear any exact price targets or time frame given, although Lisa Rapuano takes a long-term view and doesn’t panic out of her funds positions when the underlying thesis remains intact.  With such a huge short interest of more than 5 million shares on last look, it is always interesting to see various points of view.  They say "beauty is in the eye of the beholder," and it has been shown through time that financial metrics are as well. 

As 24/7 Wall St. enjoys screening value stocks for our Special Situation Investing Newsletter, this certainly gave us a different way of looking at some stock screens in a different light compared to traditional value screens. 

The next VALUE INVESTING CONGRESS takes place in May 6 & 7, 2008 in Pasadena, California, and 24/7 Wall St. would recommend that any value investing strategists and managers consider attending.  Sometimes a simple idea or new way of thinking about a situation can be worth millions, and there was far more than one simple idea and more than one way of thinking differently about a situation.

Jon C. Ogg
November 30, 2007

Posted on: November 30, 2007 – 12:13 pm in Internet, Value Investing, , , , , ,

Media Digest 11/7/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, profits rose 2.7% at Toyota (TM) and the company raised full-year forecasts.

Reuters writes that GM (GM) will take a $39 billion non-cash charge in Q3

Reuters reports that Nasdaq (NDAQ) will buy the Philadelphia Stock Exchange for $650 million.

Reuters said that the head of the Phildelphia Fed said the rates should not be cut unless the economy is growing much more slowly.

Reuters writes that the CEO of Walmart.com (WMT) expects strong holiday sales.

The Wall Street Journal writes that two analysts believe that Morgan Stanley (MS) will have to take a write-down of as much as $6 billion in the next quarter.

The Wall Street Journal writes that the Fitch downgrades of corporate bonds is rising.

The Wall Street Journal writes that Sony Ericsson plans its own digital music store for its handset customers.

The Wall Street Journal writes that AT&T (T) has cut forecasts of how fast it can roll out its fiber U-Verse service to compete with cable.

The New York Times writes that there are now nearly 100 billionaires in China.

The FT writes that the risk of a mortgage-backed securites fire sale is mounting.

The FT writes that oil traded over $98 in London.

The FT reports that the dollar value of failed buy-outs hit $200 billion this year, double the number last year.

Bloomberg writes that credit-default swaps on bonds of Citigroup (C)., Wachovia (WB). and Morgan Stanley are trading at the highest in at least five years on speculation the nation’s biggest banks may be forced to write down more subprime assets.

Barron’s writes that Blue Nile (NILE) earnings drove the stock higher.

Douglas A. McIntyre

Posted on: November 7, 2007 – 4:11 am in Press Digest, , , , , , , , ,

Blue Nile Earnings Set To Tell All (NILE)

Blue Nile, Inc. (NASDAQ:NILE) is set to report earnings after the close today.  The online jewelry retailer is expected to post earnings of $0.16 EPS on $68 million revenues.  The estimates for calendar and fiscal Q4 are $0.44 EPS and just over $114 million in revenues.  If the company offers any fiscal guidance for 2008 the estimates are $1.29 EPS and $389.6 million in revenues; which represents roughly a 26% gain in EPS and a 21% revenue gain compared to consensus estimates.

Blue Nile has recovered a bit from recent lows, but shares are well off the $100+ highs of early to mid-October.  Options traders appear braced for a move of over $6.00 based upoin current pricing.  As shares are still up more than 100% from the end of 2006 and since Blue Nile is no longer in that massive uptrend, it looks like some traders have been stepping out of the way ahead of the earnings.  The mid-October short interest listed 3.364 million shares as the short interest, which is about 5.2-times average daily volume.

Analysts are all over the map on price targets here, and we recently noted how Citigroup made one of the recent upgrades from a Sell to a Hold ahead of the event.

Here was the August 6 preview for that round of earnings if you wish to compare.

Jon C. Ogg
November 6, 2007

Posted on: November 6, 2007 – 1:23 pm in Earnings, Internet, Retail,