Fondos.Net - Martha Stewart Stock: A Mint for Homemaking Money makers
Martha Stewart Stock: A Mint for Homemaking Money makers
When it comes to talking stocks, no name seems more
familiar to people in or out of the investment world than Martha
Stewart. The domestic diva, known for her
cooking,
gardening, etiquette, and arts and crafts projects, had her career
rocked,
beginning in 2002 when a scandal formed involving her sale of shares in
a drug
company merely days before the company’s application for a new drug was
denied. Convicted of lying to
investigators regarding
the stock sale, she was sentenced to prison in 2004 and released in
March of
2005 to house arrest for a five-month term at her home in Bedford, New
York. In the
months leading to her release Martha
Stewart stock price rose dramatically, showing big things for then
incarcerated
Stewart.
Martha Stewart Living
Omnimedia, Inc., traded under the stock
symbol, MSO, is a leading creator of original “how-to” content and
products for
homemakers and other consumers. The
company uses the extremely well-known “Martha Stewart” brand name
across a wide
range of media and retail outlets in order to provide consumers with
the
knowledge, products, and other resources they need to raise the quality
of
living in and around their homes.
Since her March
release, Martha Stewart stock price has
steadily been on the decline. By the end
of July 2005, the New York
based multimedia company announced that its second-quarter loss had
widened,
weighed down by charges connected with the upcoming daytime television
show. The company expects operating
losses to narrow at the end of 2005, as it begins to enjoy the benefit
of a new
syndicated television show as well as the continued improvement in
advertising
revenue to its flagship magazine.
In order to turn
around its fortune, restore brand imaging,
and perhaps increase the Martha Stewart stock price, the company has
signed a
number of deals ranging from new radio and television programming, to a
new
line of “how-to” home videos based on the company’s expansive
programming
library. The latest of these deals is with the Discovery Communications
cable
company, which plans to broadcast “Martha,” a television show being
created by
reality television genius Mark Burnett and set to release in early
September,
as well as a new home improvement reality series. Additionally,
the company plans to get more
brand exposure from Martha Stewart’s version of “The Apprentice,” which
will
also air this fall. Perhaps, with the
increased exposure the new deals are sure to bring, we will see a rise
in the
Martha Stewart stock price.
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