• by David Goetzl , October 13, 2010

Martha Stewart may not be cooking up much interest, but the Hallmark Channel had an impressive day Wednesday in one area. Shares of its parent company Crown Media soared nearly 46% after a Motley Fool column suggested the stock could more than double.

More than 1.3 million shares changed hands Wednesday, a massive amount. On Monday, it was 12,100.

Shares Wednesday went from $2.55 to $3.72.

Part of the reason may have been Motley Fool columnist Jim Royal suggesting Crown could experience a share bump, due to a potential sale to a major media entity, although that possibility has waxed and waned for some time. Still, Royal said a large bump is in the offing, likely inspiring some individual investors to get in on the action.

One reason for growth, he suggested, is a recent recapitalization, where Hallmark Cards took a larger ownership position in Crown -- about 70% up to 90% -- via a transaction that cut the debt Crown owes it. The debt has hampered the company for some time and overshadowed a sometimes solid performances at the Hallmark Channel.

Royal, who says he has invested himself in Crown, indicated that the recapitalization makes Crown's "profitability more apparent to investors," setting the stage for the stock to "appreciate to full value." He listed a target price range of $4.27 to $6.19 a share.

Not everyone agrees with Royal. Major shareholder S. Muoio & Co. sued Crown in Delaware chancery court to reverse the recapitalization on grounds that Hallmark Cards got too good a deal. The trial is over, and a judge is expected to rule by the end of the year.

Crown is a volatile stock and its price could very quickly return to the range -- in the mid $2s -- where it has been trading recently.

The Hallmark Channel has been trying to goose interest in Stewart by re-airing her daily show in prime time this week, as early ratings have been unimpressive.