Bluestone Capital Announces Investment Opinion on Martha Stewart Living Omnimedia.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners NEW YORK--(BUSINESS WIRE)--Oct. 11, 2000 BlueStone Capital Initiates Coverage on Martha Stewart <noinclude></noinclude> Martha Stewart (born Martha Helen Kostyra on August 3, 1941) is an American business magnate, author, editor and homemaking advocate. She is also a former stockbroker and fashion model. Omnimedia (MSO (1) (Multiple System Operator) Typically refers to a cable TV organization that owns more than one cable system, but it may refer to an operator of only one system. ) with a 1-1 Rating Senior Analyst Kathleen Heaney and Analyst Olga Urgiles of BlueStone Capital initiate coverage Initiate coverage (1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). on Martha Stewart Living Omnimedia Martha Stewart Living Omnimedia Inc. (MSLO, NYSE: MSO) is publishing and content provider founded by Martha Stewart. The Company's business activities center around the domestic arts. In 2005 MSLO reported revenues of US$209.5 million compared to US$187. , (MSO; NYSE NYSE See: New York Stock Exchange : $20.31) with a 1-1 Market Outperform-Outperform investment rating with Intermediate-term and Long-term price target of $ 27 and $ 34, respectively. ANALYST SUMMARY We are initiating coverage of Martha Stewart Living Omnimedia, Inc., a leading creator of original content and products focusing on the domestic arts, with a 1-1 (Outperform-Outperform) investment rating. In our view, Martha Stewart has built a prominent brand name by leveraging its content and product offerings through multiple distribution channels, which includes, retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → , catalogs, television, magazines, and the Internet. Consequently, in a short period of time the company has evolved into a leading content company with attractive publishing and media assets in the how-to domestic arts market. In our view, MSO's in-depth coverage of many related verticals provides the company with a competitive advantage versus other more focused, single-market companies. Moreover, the Martha Stewart franchise is able to draw on the interests of a diverse audience. In our view, the combination of platforms and the proprietary position of the Martha Stewart brand in the large home, garden, entertaining, and other related markets supports superior growth prospects and almost unlimited new product and new channel opportunities. Our intermediate and long-term price targets of $27 and $34, respectively, are based on a sum of the parts analysis. We have applied a premium multiple to most business segments versus its peers to reflect the success and growth potential the company has across its multiple media platforms. We estimate robust top-line growth of 15% and earnings growth of 20%, through 2003 stemming from the company's content pipeline and e-commerce initiatives. Recent Internet investments should begin to yield significant growth next year. |
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