October 19, 2004
SpeculatingStocks.com Stock Pick: Martha Stewart Living Omnimedia, Inc. (MSO)
Stock Price: $17.66 (short-term strong short)
Martha Stewart Living Omnimedia, Inc. is a provider of television content as well as domestic merchandise for homemakers and other consumers.
MSO hit a low of around $15.00 within three trading days.
We believe MSO is once again a short-term strong short after jumping huge today on news that the new CEO of Kmart is a branding specialist. Kmart markets Martha Stewart's brand; however, we believe it will take a while for this new CEO to begin focusing on the Martha Stewart brand.
Bottomline is the company is still without its namesake until March. Competitors are also creating similar shows to fill the void of Martha Stewart.
The stock is still at its highest level in two years when the company is really not doing that well. This stock would be fairly valued at $11.00 - $13.00.
SpeculatingStocks.com Target Price: We expect MSO to fall to $15.00 within the next couple of weeks.