Nov 5, 2007

Kevin Duffy on anti-Martha Stewart hysteria

Somehow the anti-Martha humor just doesn’t do it for me. Perhaps it’s the underdog in me not getting much of a thrill out of kicking someone while she’s down. The whole affair, in my humble opinion, is disgusting. The woman committed no crime, then tried to protect herself from the government when they tried to destroy her. She benefited to the tune of $50,000 thanks to a broker’s tip. She was never an insider of Imclone and never guilty of insider trading. She was found guilty of “lying to the government” in order to protect herself.

In all the anti-Martha hysteria, we bought some of her company’s stock the morning of her sentencing, then sold it 2 months later for a tidy 100% profit (the stock is up another 33% from where we sold, of course). Martha Stewart is a classic market entrepreneur, something attuned to an endangered species in this finger pointing, blameless, litigation-mad country of ours. And she is now super-motivated to regain her life, her reputation, and her business. I think she will be successful. At the right price, I’d love to invest again in her comeback story.

~ Kevin Duffy, Bearing Asset Management, November 30, 2004

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