Black Widow
07-21-2008, 06:15 PM
Talk about your odd couples.
Since their inceptions as publicly traded companies, Martha Stewart Living Omnimedia and World Wrestling Entertainment have followed similar, confusing paths.
And, while Martha Stewart and WWE's Vince McMahon are rarely seen in social circumstances together, their stocks in many ways seem to be joined at the hips. For a brief time they were members of the elite billionaire club.
Both companies decided to ride the wave of stock market euphoria back in the late 1990s and take their companies public.
First was Martha Stewart Living. Its IPO was on Oct. 18, 1999.
The shares were priced at $18 and immediately surged to $52 in the first day of trading only to settle that day at $35. That price was never to be seen again.
One day later, World Wrestling Federation ---- as it was known then ---- came to market at $17 a share. It jumped immediately to $35 and settled around $25. Again, that price was never achieved after that.
Both companies soon experienced difficulties that led to a sharp sell off in their stock prices and problems for the leaders.
Of course, Martha Stewart wound up going to jail after being charged with obstruction of justice, not for stock trading in her company but rather for issues related to trading shares of biotech company ImClone.
When charges were brought against Stewart the stock fell to below $6. But, Americans rallied behind the domestic diva when she was released and the stock soared to the $35 in early 2005. It has been in a free fall ever since trading at its current level of $6.40.
World Wrestling got into big trouble in 2002 when the company lost a court battle over the use of the letters WWF. It was determined that the World Wildlife Federation ---- which became known as WWF in 1961 ---- was entitled to keep control. That's when the wrestling company changed its name from the World Wrestling Federation to WWE.
It was also at that time that the stock fell to its all-time low of $7. But, the popularity of its entertainment franchise has remained strong despite the death of several of its athletes and severe image problems. The stock has steadily recovered and currently trades above $16 a share.
Who would have thought nearly 10 years ago that Vince would have come out ahead in the unofficial competition with Martha? To be sure, neither stock has been a winner but both have their loyal fans and supporters. It will be interesting to see how thing work out over the next 10 years.
Since their inceptions as publicly traded companies, Martha Stewart Living Omnimedia and World Wrestling Entertainment have followed similar, confusing paths.
And, while Martha Stewart and WWE's Vince McMahon are rarely seen in social circumstances together, their stocks in many ways seem to be joined at the hips. For a brief time they were members of the elite billionaire club.
Both companies decided to ride the wave of stock market euphoria back in the late 1990s and take their companies public.
First was Martha Stewart Living. Its IPO was on Oct. 18, 1999.
The shares were priced at $18 and immediately surged to $52 in the first day of trading only to settle that day at $35. That price was never to be seen again.
One day later, World Wrestling Federation ---- as it was known then ---- came to market at $17 a share. It jumped immediately to $35 and settled around $25. Again, that price was never achieved after that.
Both companies soon experienced difficulties that led to a sharp sell off in their stock prices and problems for the leaders.
Of course, Martha Stewart wound up going to jail after being charged with obstruction of justice, not for stock trading in her company but rather for issues related to trading shares of biotech company ImClone.
When charges were brought against Stewart the stock fell to below $6. But, Americans rallied behind the domestic diva when she was released and the stock soared to the $35 in early 2005. It has been in a free fall ever since trading at its current level of $6.40.
World Wrestling got into big trouble in 2002 when the company lost a court battle over the use of the letters WWF. It was determined that the World Wildlife Federation ---- which became known as WWF in 1961 ---- was entitled to keep control. That's when the wrestling company changed its name from the World Wrestling Federation to WWE.
It was also at that time that the stock fell to its all-time low of $7. But, the popularity of its entertainment franchise has remained strong despite the death of several of its athletes and severe image problems. The stock has steadily recovered and currently trades above $16 a share.
Who would have thought nearly 10 years ago that Vince would have come out ahead in the unofficial competition with Martha? To be sure, neither stock has been a winner but both have their loyal fans and supporters. It will be interesting to see how thing work out over the next 10 years.