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Martha Stewart Living Stock Jumps NewsMax WiresNEW YORK -- Shares of Martha Stewart Living Omnimedia Inc. shot higher Friday after the company's founder was sentenced to prison time for lying to federal authorities about a stock sale unrelated to the company. MSO surged $3.17, or 37 percent, to $11.81 on the New York Stock Exchange. The stock, which traded between $9.35 and $9.45 per share in the half-hour prior to sentencing, moved from $9.59 to $10.35 in the four minutes after the news broke, then rose as high as $12.12 before slipping back. Story Continues Below Volume in the stock was extremely heavy at about 17.1 million shares. It was the highest percentage gainer on the NYSE for the day. Stewart received five months in prison and another five months of home confinement, and must pay a $30,000 fine. In addition, the judge allowed Stewart to remain free while she appeals the verdict. Stewart could have received up to 16 months in prison on the four counts of which she was convicted. The judge could have also ordered her to serve her time while her appeal was ongoing. After Stewart was indicted on June 4, 2003, she stepped down as chairman and CEO of Martha Stewart Living Omnimedia, but remained on the board and assumed the title of creative director. She stepped down from both posts March 15 and now holds the title of founding editorial director. MSO's stock climbed from $8 to over $12 per share in the month before her indictment, falling from $11.40 to $9.52 per share the day she was officially charged. The stock climbed steadily during her trial earlier this year, as investors believed she would be found innocent. In the half-hour prior to the verdict, the stock surged from $13 to $17 per share, only to fall to $10.86 after the guilty verdict was returned. Stewart still maintains a 61 percent stake in the company.
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