Eric Bolling tells viewers if they want to find out about diamonds, check out pricescope.com.
Guy Adami adds that credit cards are the winners, here. He likes American Express (AXP).
Tim Strazzini thinks eBay (EBAY) will benefit from this trend.
From Seattle, Blue Nile Chief Executive Mark Vadon joins the guys for the remainder of this conversation.
Vadon says this year his company will do $300 million in revenue. He thinks people are just becoming more aware of what they can buy over the internet.
What about your margins, asks Dylan.
Blue Nile runs on 20% gross margins replies Vadon. The strategy is to keep margins low and manage costs.
Tim Strazzini asks about loose gem stones versus finished pieces of jewelry.
Vadon explains that lose diamonds are only 5% of his company’s revenue. Most of the business is people picking a diamond, and a setting, then having a custom ring or necklace made.
Dylan asks the guys if Blue Nile stock is a buy, sell or hold?
- Jeff Macke says he likes this company a lot because they’ve changed the landscape of an industry that’s as old as civilization.
- Tim Strazzini adds this is what the internet is all about.
- Guy Adami likes the stock but reminds the panel that they have to expand their customer base for this stock to grow.
- Eric Bolling says he loves everything about selling on the internet.
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Trader disclosure: On May 17, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Macke Owns (JWN); Strazzini Owns (GOOG), (JBLU), (IBM), (EDS), (WMT), (YHOO); Strazzini Is Short (GOOG) Bolling Owns Gold, Silver, Coffee, Sugar; Bolling Is Short S&P Futures; Bolling Is Short S&P Options