Fear is Media Buyers, Consumers Will Shy Away From Company.

Assesses the financial health and future of shares of Martha Stewart Living Omnimedia Inc. (MSLO). Percentage reduction in the share value after Stewart was found guilty in her court case; Economic history related to MSLO's stock price performance since Stewart's indictment in 2003; Indication of volatility in the price of MSLO stock on the day she was found guilty; Trading activity in the options market, indicating holders of MSLO stock were hedging their bets; Speculation about the share price as Stewart's case makes it way through the appeals process; View of author that investors will hang back until the MSLO board of directors and its senior management meet; Investors concerns related to media buying for Stewart's magazine and television show; View of the author the stock is over-valued. INSET: A Misfire on Martha.