Hashemian Blog Huh? What? Saturday, July 17, 2004 Martha's Relief Friday morning, after hearing that Martha Stewart had been sentenced to 5 months in prison, the first thing I did was to check the stock of the company she founded, Martha Stewart Living Omnimedia Inc (MSO). While I was surprised that the stock had surged 40%, I wasn't stunned that it had gained in value. Somehow I had a feeling that the stock would do well even if she were sentenced to the maximum prison term. This was a classic example of a relief rally. The stock had languished for months as investors were unsure of the fate of its founder. Once her sentencing term became public, investors clamored and the pent up pressure was finally released. Coincidentally, Friday was also the July's expiration date for stock options. A shrewd speculator could have made up to 20 times the amount invested, if he or she had bought a few options contracts on Thursday. The MSO stock may still not be a good investment and the long term vitality of the company is far from certain. The company is facing a multitude of challenges and its future is as murky as it was prior to Stewart's sentencing. I wouldn't be surprised that once the excitement has worn off, it would slide to even below its pre-sentencing value. But that all depends on how MSO handles its business now that its founder's legal uncertainty is behind her. I wonder if she found some time on Friday to sell a few shares of her own. Hopefully this time around she played by the rules. <> // posted by rh 0 comments | 0 Comments: Post a Comment

Links Technorati Profile TMCnet.com ARCHIVES 09/01/2003 - 10/01/2003 03/01/2004 - 04/01/2004 04/01/2004 - 05/01/2004 05/01/2004 - 06/01/2004 06/01/2004 - 07/01/2004 07/01/2004 - 08/01/2004 08/01/2004 - 09/01/2004 09/01/2004 - 10/01/2004 10/01/2004 - 11/01/2004 11/01/2004 - 12/01/2004 12/01/2004 - 01/01/2005 01/01/2005 - 02/01/2005 02/01/2005 - 03/01/2005 03/01/2005 - 04/01/2005 04/01/2005 - 05/01/2005 05/01/2005 - 06/01/2005 06/01/2005 - 07/01/2005 07/01/2005 - 08/01/2005 08/01/2005 - 09/01/2005 09/01/2005 - 10/01/2005 10/01/2005 - 11/01/2005 11/01/2005 - 12/01/2005 12/01/2005 - 01/01/2006 01/01/2006 - 02/01/2006 02/01/2006 - 03/01/2006 03/01/2006 - 04/01/2006 04/01/2006 - 05/01/2006 05/01/2006 - 06/01/2006 06/01/2006 - 07/01/2006 07/01/2006 - 08/01/2006 08/01/2006 - 09/01/2006 09/01/2006 - 10/01/2006 10/01/2006 - 11/01/2006 11/01/2006 - 12/01/2006

هاشمیان.com

 Home

 Blog

 Web Tools
Usage

 News

 Articles

 FAQ

 About

 Contact

 Financial Markets Book
Read Complete Book

BOOK
The Shock Doctrine: The Rise of Disaster Capitalism
Naomi Klein
$16.00

BOOK
The Trigger Point Therapy Workbook: Your Self-Treatment Guide for Pain Relief, Second Edition
Amber Davies
$21.95

BOOK
Magic Tree House Boxed Set, Books 1-4: Dinosaurs Before Dark, The Knight at Dawn, Mummies in the Morning, and Pirates Past Noon
Mary Pope Osborne
$15.96

BOOK
The Morning Meeting Book (Strategies for Teachers, 1)
Lynn Bechtel
$22.00

BOOK
Have a New Kid by Friday: How to Change Your Child's Attitude, Behavior & Character in 5 Days
Dr. Kevin Leman
$17.99

|marthas-relief-friday-morning-after|

more…