By Richard Siklos, editor at large

July 11, 2008

LOS ANGELES (Fortune) — What’s cooking with Martha Stewart?

No, It’s not the name of a new segment on her TV show, one of her recipe books, or a page in her eponymous magazine (well, actually it might be). But it is a serious question about all the activity at Martha Stewart Living Omnimedia lately. Its stock is down nearly 60% over the past year and MSLO has gone through a raft of changes - most notably the abrupt departure of well-regarded CEO Susan Lyne last month. Outside the executive suite, the company is moving in interesting new directions that emphasize merchandising over media. This week, it finally got a toe-hold at Wal-Mart (WMT, Fortune 500), via a deal under which Martha-branded scrapbooks and other craft items will be sold there. A few weeks ago, the company completed the $50 million purchase of the licensing business of celebrity chef Emeril Lagasse, underscoring that MSLO is no longer all about Brand “M”. What this amounts to, I’d wager, is that Martha Stewart, both the brand and the person, are settling into what might best be called post-phenomenon life. This is no small thing and…