Martha, shall I compare thee to... Mozart? Consider the facts: Mozart began exhibiting musical gifts at the ripe old age of 3, the same age Martha began gardening. Mozart's contributions to music provide beauty to the ears; Martha's contributions to lifestyle provide beauty to the eyes. Her body of work is a one-of-a-kind perfectionism, a level of creativity in the field of lifestyle beautification that will not likely be surpassed. Methinks Rick might be playing a jealous Salieri to Martha's Mozart.
Our bodacious bear writes: "Disney sold family entertainment. Hershey sold chocolates. Martha sells Martha." He couldn't be more wrong. Martha sells knowledge and secrets heretofore inaccessible to the average Jane. She also sells kits and paints and recipes, the tools that realize the fantasies Martha stimulates in our dreams. The "exit" door to Martha's still-unfolding potential is nowhere in sight. Where Rick sees problems, I see lights at the tunnel's end.
He criticizes the Publishing division as being "maxed out." Year to date, revenues were up 10.5% benefiting from one extra issue of the Weddings magazine. ONE EXTRA ISSUE! First the company creates domestic goddesses; then it feeds information to their ravenous appetites. Extra issues can be published and published before satiating this market. When you unfold the goddess in every woman, growth is the operative phrase.
He criticizes the Television division as "overexposing" Martha, presuming it ultimately leads to over-saturation. Unlikely. Television revenues climbed 18.6% this year, benefiting from the third-quarter launch of Martha's Kitchen, which is now the top-rated weekly show on the Food Network among women ages 25-54.
He criticizes the Merchandising unit as being "self-defeating" to Martha's "integrity." Meanwhile, this division's revenues are up 48.5% year to date, thanks to the opening of MSO's baby line. Coming up in 2000 is the launch of gardening tools and a line of housewares. Disciples need the proper tools to implement the teachings of the master.
Finally, Internet orders zoomed to 33% of all orders in the third quarter, up from 22% in the second. Rick sees problems; I see unlimited revenue potential.
Martha Stewart is the guru of domesticity. She has transformed her knowledge into a cornucopia of businesses, which enable all of us the opportunity to realize whatever domestic visions preoccupy our consciousness. Investing in MSO is comparable to owning a small piece of the rights to Mozart's unequaled body of work, which has transcended time and stylistic changes. It's not just a no-brainer to be bullish on MSO -- "It's a good thing!"
This Week's Duel
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