Shares of Martha Stewart Omnimedia (NYT reg. required) got hammered yesterday when it was learned she perhaps engaged in a little insider trading. Knowing her, she’s already planning a book and TV segment on how to decorate a jail cell.
As you can expect, Martha has an answer for why she would unload stock of a company whose CEO used to date her daughter on the eve of the release of some very, very bad news.
Quote (from NYT):
Ms. Stewart, who has not been charged with any crime, issued a detailed summary of her activity with regard to ImClone stock late yesterday. She said she bought 5,000 shares “several years ago in the public market” and sold about 20 percent of them at $70 each as part of a Bristol-Myers Squibb tender offer last October. The remaining 3,928 shares, she said, were to be sold if the share price dropped below $60. She said she made the arrangement with her broker, whom she did not identify.