This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street This Week: Jan. 27

3. Martha vs. Macy's

Martha! Martha! Martha! There is just not enough Martha Stewart to go around.

On the other hand, if you ask the lawyers for Macy's (M - Get Report), perhaps there is a bit too much of the Domestic Diva out there.

The department store chain filed a lawsuit Monday against Martha Stewart Living Omnimedia (MSO) in an attempt to break up a licensing deal between the housewares company and Macy's competitor J.C. Penney (JCP - Get Report).

Back in December, Penney paid $38.5 million for a 16.6% stake in MSO and announced plans to open mini-Martha Stewart shops in its stores. Macy's says Martha's deal with Penney violates the terms of her so-called exclusive agreement with Macy's to sell Martha-branded items at its outlets.

Um, excuse us for asking, but what on earth did the folks down in Plano, Texas think was going to happen when it tried to muscle into Macy's territory? Did CEO Ron Johnson really think his company's arch-rival would stand idly by and let him steal their hot property?

Boy, for a guy who made his bones at Apple and Target (TGT), he sure was off-target on this one. We can't wait to see his next big move -- provided he escapes from this legal mess.

And speaking of legal messes, Martha Stewart herself is anything if not well-acquainted with the law (wink, wink), and she also should have known that the Penney deal would prove troublesome with her old buddies at Macy's.

And after her nasty split with Sears Holdings (SHLD) in 2009, one would think Martha would prefer to remain more tightly aligned with the upscale shoppers at Macy's as opposed to the more pedestrian purchasers at Penney.

Alas, that does not seem to be the case. Or at the very least Martha does not seem to care at this point.

Stewart seems completely sold on Ron Johnson's vision, or, more likely, the vision of $200 million in royalties and licensing fees she will collect from him over the next 10 years. And that's money she could really use considering her company has not booked a profitable year since 2007.

So back off Macy's! Business loyalty and brand dilution be damned! The one and only Martha Stewart says you can indeed have too much of a "good thing" ... or at least she can.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSO $0.00 0.00%
AAPL $93.74 0.00%
GOOG $693.01 0.00%
GM $31.80 0.00%
JCP $9.28 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs