Blue Nile (NILE) and Britney's Pregnant Sister!
Apparently Britney Spear's sister, 16 year old Jamie Lynne Spears is pregnant. This is a great thing long term for Blue Nile investors. What's the connection you ask? Read on.
Seriously, if you were the Spear's PR manager how could you salvage this situation? Abort the child? Unlikely, at 3 months you'd probably have to use one of those horrific abortion techniques (partial birth I think it was called) too much mess (PR mess). Put the kid up for adoption? Also another unlikely scenario because of the additional PR mess it would create (message: get pregnant, give up for adoption no biggie, have more sex, repeat ...) I know! Get married. it would essentially say "Yes we know that this situation is not favorable, but we're moving forward and doing the responsible thing." This is the lesser of the evils. Or is it?
So if Jamie, 16, and her boyfriend 19 get married, it's going to send a message out to the kids that yes it's ok to get married at such a young age, and then all the reasons why I think NILE has great upside kick in. The kids will want to get married, they've been brainwashed into thinking they have to get a ring, oh not much money, still need a ring. Who sells rings online? Blue Nile. What does this mean? NILE just got a larger and less-budget-conscious demographic added to their client list!!
Monkey see, monkey do. That's the world we live in. The great thing is the more predictable it is, the easier it is to profit from it.
Seriously, if you were the Spear's PR manager how could you salvage this situation? Abort the child? Unlikely, at 3 months you'd probably have to use one of those horrific abortion techniques (partial birth I think it was called) too much mess (PR mess). Put the kid up for adoption? Also another unlikely scenario because of the additional PR mess it would create (message: get pregnant, give up for adoption no biggie, have more sex, repeat ...) I know! Get married. it would essentially say "Yes we know that this situation is not favorable, but we're moving forward and doing the responsible thing." This is the lesser of the evils. Or is it?
So if Jamie, 16, and her boyfriend 19 get married, it's going to send a message out to the kids that yes it's ok to get married at such a young age, and then all the reasons why I think NILE has great upside kick in. The kids will want to get married, they've been brainwashed into thinking they have to get a ring, oh not much money, still need a ring. Who sells rings online? Blue Nile. What does this mean? NILE just got a larger and less-budget-conscious demographic added to their client list!!
Monkey see, monkey do. That's the world we live in. The great thing is the more predictable it is, the easier it is to profit from it.
Comments
BIDZ PE = 15.64
NILE PE = 42.30
Net Income (full year 2007):
BIDZ = 18.126M
NILE = 17.459M
Net Income (4Q):
BIDZ = 8.213M
NILE = 7.543M
Just think about that for a minute — BIDZ had a higher Net Income in the 4Q and full year 2007 than NILE.