Nathan, you're absolutely right. The analysts are overly optimistic with their projection of 30% growth for Blue Nile
As for Blue Nile's cash hoard, as I pointed out dueling over Cisco
A negative cash conversion cycle is wonderful to have in a deflationary environment, where the cost of products keeps dropping. In case you haven't noticed from the recent CPI numbers or the record profits rolling into oil giants like ExxonMobil
Bottom line: Don't be fooled by a shiny rock, or you'll end up paying diamond prices for cubic zirconium shares.
Wait! You're not done. This is just a quarter of the Duel! Don't miss Chuck's bearish beginning, Nathan's bullish response, and Nathan's final word. When you're done, you're still not done. You can vote and let us know who you think won this Duel.
The Motley Fool has kicked off its ninth annual Foolanthropy campaign! Nominate your favorite charities on our Foolanthropy discussion board through Nov. 1. For guidelines on what makes a charity Foolish, visit www.foolanthropy.com .
At the time of publication, Fool contributor Chuck Saletta owned shares of General Electric. Blue Nile is a selection of both Motley Fool Hidden Gems and Motley Fool Rule Breakers. The Fool has adisclosure policy.