Martha Stewart Living Shares: You’re Fired!

Shares of Martha Stewart’s company were down as much as 20 percent today, after the company reported a pretty bad earnings report. I’ve been very bearish on MSO stock for quite some time now on this blog, but even at $17 and change, I can’t reverse course just yet. I just don’t see how they are going to make any meaningful amount of money, and without consistent profitability, MSO is not worth nearly $1 billion. Even a forward price-to-sales multiple of 3 times (a very rich valuation in my opinion) would mean the stock has further to fall from here.