Traders Cooperative

[Painterguy1]

Brokers are defending NILE...

NILE Blue Nile: Co's outlook may have caught many off guard, after a solid 2007 - McAdams Wright (42.12 -11.73) -Update-

McAdams notes that NILE reported Q4 results yesterday. Firm says that following the co's success in FY07, they expect that mgmt's outlook caught many off guard. Firm says that while it presumes that operating trends will improve somewhat in the latter portion of the year—which at this point in time is a question mark—the firm foresees little if any downside risk. That said, they don't believe that the softness that the co is experiencing is in any way a reflection of NILE's economic model; they believe that it is simply a function of the consumer environment. They also expect that the co will continue to take share.



I love that, a retailer with a P/E in the 40's that predicts 10% growth going into a slow economy, and there is little if any downside risk...

Translation : Will the sheep please keep buying these shares so the price doesn't go down much while we dump ours.