Imclone News Hits Martha Stewart Shares

Wed Jun 12,11:39 AM ET

NEW YORK (Reuters) - Shares of Martha Stewart Living Omnimedia Inc. fell sharply on Wednesday on concerns about Martha Stewart's personal involvement with the former head of ImClone Systems Inc., who was arrested on insider trading charges, analysts said.

Stewart, the home design and decorating diva, sold about 3,000 shares of ImClone shortly before the company's experimental cancer drug was rejected by the Food and Drug Administration ( news - web sites).

ImClone's former chief executive, Sam Waksal, was arrested on Wednesday and charged with conspiracy, securities fraud and perjury involving an alleged insider trading scheme in ImClone shares.

Stewart, a former girlfriend of Waksal, has denied any wrongdoing in the matter and, through a company spokesman, has said she was not acting on nonpublic information when she sold her ImClone shares. The company spokesman was not immediately available to comment on Wednesday.

Nevertheless, Wall Street analysts said Stewart's proximity to the insider trading case has shaken investors, pressuring the stock to its lowest level since mid-January. Since her stock sales were first reported late last week, Martha Stewart shares have fallen nearly 21 percent.

In heavy trading this morning, the stock was down $2, or nearly 12 percent, to $15.10, and was among the biggest percentage losers on the New York Stock Exchange ( news - web sites).

The stock was falling on "concerns related to Martha Stewart's dealings with ImClone," said George Smith, an analyst at Davenport & Co.

"Shares of the company fell last week when the news of the trades came out," said Brean Murray & Co. analyst Kathleen Heaney. "There's no reason they wouldn't also fall when (Waksal) was arrested."

The importance of Martha Stewart and her image to her company cannot be overstated, analysts said. Any link to a criminal proceeding could have lingering effects.

"If this becomes an issue that spreads beyond Barrons and the Wall Street Journal to People, Time Magazine and Saturday Night Live ( news - Y! TV), that could have a real impact (on the company)," Davenport's Smith said.

-- Is nothing sacred? (NOT @ "good. thing"), June 12, 2002

Answers

OH MY GOD!!!!!!!. We should hold Martha Stewart to a higher standard than all of the administration's Enron stock holders who (against the law) held onto their Enron stock after being appointed to office, just to dump it after all the calls from Kenny and buddies to them begging for a bailout.

I gotta tell you, it's disqusting that Martha should be so corrupt (although nothing has been proven), yet the administration still has not answered any questions about owning and dumping their stock. Guess we expect higher standards from a "professional homemaker" than we do from the leaders of industry and the leaders of the country.

-- Cherri (whatever@who.cares), June 12, 2002.

Cherri,

You don't really believe King Hypocrite Dumbya is going to go after people that belong to his little clique do you? He told the SEC to take a real close look at certain individuals and use them to make an example, especially those who did not contribute to his campaign. Now he is even coming up with new SEC regulations in order to fool the people and take the heat off of him and his criminal compadres. The majority of the blind sheeple will think that he is a nice honest guy for doing this, while he and his deceptive friends will continue to scam the people using loopholes only they know about.

-- (dumbya@filthy.lying.bastard), June 13, 2002.

You guys are totally missing the point ... someone actually slept with Martha?

-- helen (hope@for.all.of.us?), June 13, 2002.

Sammy could not resist my charms. I fashioned a boudoir from fragrant flowers and the softest moss. I imported rare butterfies from Sumatra. I adorned my 60ish body with erotic scents and oils from the Casbah. I studied the Kama Sutra and employed a Sri Lankan trainer to instruct me in subtle movements of the loins and the tongue.

Basically, I fucked my way to wealth.

-- (Martha@buy low.sell high), June 13, 2002.

Martha is too modest. An important element in her makeover was my trim, shampoo and styling of her bush. When she first arrived, it was in such disrepair---tangled, matted and fetid.

All I could think was "merkin, merkin, merkin". But I trimmed it so as to have a perky, punky look. I shampooed it with herbal shampoo from Nepal. I dyed it honey blond. It became her pride. Watch her closely on TV. It often peaks from beneath her flowerd apron.

Best of all, Sammy loved it.

-- (Mr Duane @ Greenwich, CN.just down the road from the.Skakel's), June 14, 2002.

Martha Stewart, born Martha Kostyra, is a polack raised in Nutley NJ who slept her way to the top and then ruthlessly held on to power. She has bankrupted K-Mart (Kostyra Mmart). Her childhood neighbor was Robert Blake (James Vijencio Gubitosi). See internet for further details of their evil cabal.

-- (film@11:00.0), June 15, 2002.

Martha Stewart was married (divorced for a while now) and has a grown daughter and a grandchild.

-- Cherri (whatever@who.cares), June 15, 2002.

Martha Stewart is in league with Klintooooooooooooooooon to start World War III and make herself Queen for Life. She was also responsible for the Y2K disasters.

-- (stupid@doo.mer), June 15, 2002.

Actually, she sold almost 4,000 shares at about $75 a share, so she bagged almost $300,000.

-- (article@not.accurate), June 15, 2002.