Martha's Sweet Side Deal

Martha Stewart Living (MSO Quote) got taken to the woodshed Thursday after the company posted weak numbers and reminded Wall Street that it's spending millions on a show from which it receives no revenue.

The New York-based media company lost $26 million, or 51 cents a share, for the quarter ended Sept. 30, compared with a year-ago loss of $15 million, or 30 cents a share. Latest-quarter numbers included a charge of $11 million, or 21 cents a share, related to the vesting of certain warrants granted in connection with the airing of The Apprentice: Martha Stewart.

Excluding the charge, the third-quarter loss was in line with the Thomson First Call analyst estimate. But the setup didn't pass muster with investors, who sent the stock down 15% and within a dollar and change of its 52-week low. ...