It doesn't seem fair. When Sears
How can you argue otherwise? In a rare instance that proves that the market thinks that the groom and bride will be better as one, both stocks soared on the synergistic news. Kmart shares rose by 7%, while Sears charged 17% higher. That's sweet in a tap-the-flatware-against-the-champagne-glass-until-they-kiss-again way.
Yet when it was time to throw out the wedding bouquet, who should leap the highest to snatch it out of the air but Martha Stewart. Yes, Martha Stewart Living Omnimedia
The stock was actually trading 20% higher earlier in the day, which was a bit euphoric when there was never any indication that Sears would be following Kmart in selling Martha Stewart Everyday merchandise. In fact, Sears and Kmart have every intention of shacking up but sleeping in separate beds. Each brand will be run separately.
However, this is good for Martha Stewart's company in the sense that it is likely to provide more stability at Kmart. That's important because merchandising has been Living's saving grace as publishing revenues have faltered since Martha's notorious trading scandal.
The merchandising deal with Kmart runs through 2009, and that means that while Kmart has made some strategic store closings to help fortify its financial position, for Living more units is better.
The Motley Fool Stock Advisor newsletter recommended the stock two years ago while it was languishing in the single digits. Well done! That pick proved to be as swift as Martha's move to snag the wedding bouquet.
Now let's see what Martha does when she rolls a double to move out of jail to see what she can really do the next time her name takes a leap.
Is Kmart the best place for the Martha Stewart Everyday line? How are you sprucing up your place for the holidays? All this and more -- in the Crafty Fools discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz thinks that Martha is worthy of a second chance -- so he's gong to let her slide the next time she lands on Water Works. He does not own shares in any of the companies mentioned in this story and is a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance.
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