Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) Moves Up Sharply
Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) jumped by a massive 8.8 percent during trading yesterday. This huge upside resulted in the stock of this $308 million market capped periodicals publishing firm being traded at $4.57 per share, which is a new 52 week bench mark.
Breach of Contract Case Stands Withdrawn
This big vote of confidence in the stock of Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) happened yesterday on the back of company announcement that it has managed to partially settle its legal dispute with its partner company Macy’s, Inc. (NYSE:M). A legal battle had raged between the two companies around the validity of retailer J. C. Penney being able to sell branded products of Martha Stewart in its stores.
Yesterday, the two companies released a press release indicating the breach of contract legal case between them stands withdrawn and did not come forward with any details of the settlement. Readers should note that in spite of the resolution of this present case, the larger legal battle between Macy’s, Inc. (NYSE:M) and J.C Penny is expected to take its course along the legal channels.
The issue that got resolved between Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) and Macy’s traces back to a 2006 agreement between the two based on which Macy’s enjoyed a exclusive rights to sell Martha Stewart’s Kitchen and bedding products. This arrangement was rocked when some products of Martha Stewart brand were also being sold in J.C. Penny stores.
Markets Show Thumbs Up
Thanks to the recent spurt of close to 13 percent in the past week and by close to 29.8 percent in December the stock of Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) is trading at 107 percent above its 52 week low price points and has moved well past the analyst price target of $3.89 per share. Its investors have seen their holdings in the stock gain by a impressive 76 percent in the trailing 12 months.