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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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