5 Stocks That Are Toxic Takeover Targets

Martha Stewart Living Omnimedia Inc. (NYSE:MSO) has been treading water for years, posting net losses in three out of the past four quarters. Investors also have lost their patience with the domestic diva as well and have sent shares of her New York-based media company plunging 75% over the past 5 years. Indeed, MSO’s broadcasting and publishing business both posted losses of more than $1.8 million during the last quarter. The only brightspot was its merchandising business, which made $5.23 million, down slightly from $5.32 million a year earlier. MSO makes a lot more sense as a niche brand at a major media company than as a standalone firm. It’s just too small otherwise. Stewart the businesswoman will probably want to sell her company sooner rather than later before the ad market tumbles again. The price she will want will be steep and given her brand cache someone will pay it.