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Martha Stewart Living Omnimedia Inc. Message Board

  • zealand.linda zealand.linda Dec 31, 2012 4:04 PM Flag

    MSO, heading into oblivion

    "A nice little franchise that overshot after going public, Martha Stewart Living Omnimedia resembles a troubled aircraft that is madly switching pilots while chunks of the plane are flying off.

    Big write-downs caused third-quarter losses to exceed total revenue; after all of five months, the chief executive said she would step down; and the company just cut two of its magazines, Whole Living and Everyday Food, as stand-alone products.

    Add in the fact that the Hallmark Channel declined to renew the daily “Martha Stewart Show,” and you have a lot less media coming out of a company named Omnimedia. Most of the profits now come from merchandising, but even those are imperiled.

    The company signed a deal with J. C. Penney to sell branded Martha Stewart products last year, which was a coup, except that Macy’s accused the company of already selling it those rights and promptly sued. The stock fell to $2.50 a share from over $4.50 at the start of the year. Clearly, it’s going to take more than a few well-placed floral arrangements to make this company look pretty again."

    Sentiment: Strong Sell