Martha Stewart Living Omnimedia is a niche player in the media sector, with a host of magazine, radio, television, and online properties that reach an estimated audience of 10 million viewers and readers, mostly women. So, after a slightly negative stock price move to-date in 2014, is Martha Stewart Living Omnimedia a good bet for investors? Case in point was the company's latest move, the outsourcing of much of the sales and marketing of its media properties to publishing giant Meredith Corporation, which management expects will provide a solid boost to its operating profitability, potentially $10 million to $15 million per year. On the upside, though, management has been aggressively restructuring the company in order to improve its future profitability, including reducing the number of support personnel, as well as transitioning publishing and video programming activities to online channels. Martha Stewart Living Omnimedia has been hurt by a string of annual operating losses over that time period, due mainly to a declining overall sales trajectory that has been a function of reduced business activities in the publishing and broadcasting areas, highlighted by the cancellation of Martha Stewart's live television program in 2012. Shareholders in niche media/consumer goods player Martha Stewart Living Omnimedia (NYSE: MSO) have likely not been too happy with the company's stock price trajectory over the past five years, down roughly 20% cumulatively.
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