Crime and Punishment

Whatever sentence is passed down in the wake of Martha Stewart's convictionon obstruction-of-justice charges, it's clear that shareholders in Martha StewartOmnimedia (MSO) have already taken their lumps. MSO stock is down morethan 40% from its 52-week high, and the forecast on Wall Street is for more stormyweather ahead. Half of the company's income comes from advertising in MSOmagazines and TV venues, which advertisers are likely to shun once Stewart issentenced. Stewart-branded items like the merchandise sold through Kmart storescould fare better, if only because the troubled discount retailer desperately needsher. If her deal was with Wal-Mart, market mavens say, she'd be long gone.