Rowing the magnificent Blue Nile

Blue Nile is exquisitely sexy, no question, and the fact that NILE is trading well below its recent Q2 earnings blowout high of $98 makes the stock tempting here.

But there's reason to believe the stock will stay put for now, perhaps until Q3 earnings are out. Brian on Howard Lindzon's blog explains the technicals. Even with great fundamentals and growth, the Amazon of the diamond industry is worth waiting for, and not much more right now.

Going, going . . .

ADRs of CNOOC, my favorite international oil and natural gas player, soared again today as money poured into China.

The stock closed at $124 and now has a P/E of 12.92. Just 11 days ago, CEO traded at a low of 92 due to the mortgage massacre. What that has to do with a Chinese energy company, I don't know. But a lot of smart people scooped up ADRs of CEO real quick, and the stock continues to gap up faster than a 1998 internet-bubble stock.

The current P/E is relatively high for an oil company, but the growth prospects of CNOOC can't be denied. The stock trades way above its 13- and 50-day moving averages now, and some consolidation is probably coming. Or not. A rise of 33% in 11 days, or eight trading sessions, is not sustainable. Right? I'll wait.

That's a Croc!

Bulls are laughing and bears are crying today. CROX busted through $60 to a mid-day high of 61.99 before settling at 59.98 today on news of a brand new apparel line.

The new line for men and children will debut at MAGIC Marketplace in Las Vegas Aug. 27-30. Pretty cool stuff. Haven't seen a pic yet, but the video footage shows a hybrid of Crocs Caymans and other more traditional material. I was up late today, probably worn out a bit from a deluge of work in the past few weeks. It was superb to wake up at 9 a.m. Hawaii time to find CROX up nicely on an overall down day.

The stock has rebounded with conviction since hitting that recent low of 44 two Thursdays ago. As volatile as the stock is, the products are resistant to a credit crunch, I believe. The global market is still new to Crocs, so I'm staying long for quite some time. CEO Ron Snyder will continue to acquire smaller companies, and CROX could emulate the Flextronics approach to growth (1998-2000, the stock there went from 11 to 40). Or CROX could sustain growth much longer. The distribution system is superior and Snyder and his BOD are on a mission.

Brew Review: Birra Moretti La Rossa

Birra Moretti La Rossa (Italy)
Appearance (0 to 4 stars): 4. Amber. Dark. Lush.
Aroma: 3.5 Slightly sweet.
Flavor: 4. Sweet, slightly nutty.
Texture: 4. Smooth, a bit fizzly, rich.
Drinkability: 4. Great on a cold night.

Overall score: 19.5.
Summary: A double bock brew. Haven't had a dark beer this memorable since my last Bass Ale.

See the Birra Moretti site

Work trip means Big Island eats

A look back at an early summer work trip to the Big Island. Work was work, but eating was better.

Brew Review: Rogue Kells Irish Style Lager

Rogue Kells Irish Style Lager (Oregon)
Appearance (0 to 4 stars): 4. Straight into the glass, it is active and fizzly. As it settles, though, the golden brown color comes out, and the fizz hides. It becomes murky and rich.

Aroma: 3. This aroma was pleasant, sharp. Not a big lager fan, though, so it's nothing to fall in love with.

Flavor: 3.5. Nice and refreshing when it's cold. No funky aftertaste, just a very clean, hoppy, even bitter taste that goes down nicely.

Texture: 3.5. Love the fizz.

Drinkability: 3.5. This is good cold, but not so great warm. The bitterness kicks in as it warms.

Overall score: 17.5.

Cost: $5.75 at The Wine Store, McCully. 22 oz.

On the label: 7 Ingredients: Great Western Pale, Crystal-15, Wheat & Acidulated Malts: Sterling Hops, Free Range Coastal Waters & Czech Pils Yeast.
NO CHEMICALS, PRESERVATIVES, OR ADDITIVES.
Irish Style Lager with a smooth mellow flavor and an apple crisp finish

Summary: As good a lager as I've ever had, but I only want it on a hot day. In honor of St. Patrick's Day, I had this bottle first, before the other eight or nine that were purchased yesterday. It was great that the young ladies at The Wine Store were so helpful and insightful. In fact, Kells wasn't even on the shelf. One of the ladies went to the supply room in back to bring me this bottle. She said there were just two left. Lucky me!

See more at the Rogue Brewery site.

No bargains left, except for . . .

It's official in Quarryville. All of my A and A- grade stock picks are out of buying range.

From Apple to RIMM, Baidu to Under Armor, they're all on fire and too hot to touch. No, wait. There is one ... no, make that two stocks that are still trading within 13- and 50-day simple and exponential moving averages (one-year chart).

FLS 70. Flowserve, with its blowing Q2 earnings, has been somewhat slow to follow the bull run of the past week. In fact, FLS sat at 69, with barely a gain, for almost the entire day. The stock is 15% up from its bottom last Thursday, but trading below its 13- and 50-day SMA and EMA. Still a steal at this price. Pupule says: Strong buy.

GOOG 515. Even with today's modest improvement, the stock is still trading within its moving averages. There's so much action in and around the company, from wireless advertising to China inroads, that I really don't know why the stock has been relatively stagnant. It is up from the low of 480 last week, but my guess is that the big boys and retail buyers are still punishing the Co for missing Q2 estimates. So the Co spent a little more to hire quality employees in China (and elsewhere). This is good for those of us who want shares on the cheap. They might remain cheap until Q3 earnings come out. Pupule says: Buy.

Blue Nile was buyable until today, when it ran up nearly 5% to 86. I hate to miss the boat on this great young Co, but patience is key. I'll wait for a pullback. And cross my fingers.

Under Armor had a slight gain today, but its moving averages are starting to catch up. At 65, UA is well off its all-time high of 73, but today's volume was extremely light. I'll wait for the stock rather than chase it.

If Bank of America's rescue of Countrywide Financial yesterday after the market wasn't affirmation enough, I don't know what else would be. Next week should be interesting. The market is relatively calm for a change, but if the street pours into tech stocks, the gadgets might soar again. Then I might be wishing I'd picked up some Garmin and Rimm, and more Apple.