Does anyone besides me think that the rosetta stone is a fad. Reminds me of Crox! Dont get it wrong! I think it is a great software. But can they really run as a large publiclly traded company? What happens when we can all speak five languages? Will we still be using it? Someone please prove me wrong!
I recently posted about this is another thread... 1. I believe that demand definitely exists for a language software. I think it is difficult for us Americans to understand this concept. Elsewhere in the world, being bi-lingual or tri-lingual is almost necessary. For non-English speaking countries, learning English is almost a necessity if you want to do something w/ business or international. In China alone, their exists demand. 2. Rosetta doesn't have a competitor... at least in the software department. Software will be cheaper than attending classes... provided one has a computer. As long as the IPO is not outrageously mispriced, I think the stock should perform okay... personally I wouldn't buy it (maybe if it expands its business). The profit margins from a software company should be significant, nevertheless. Remember that other educational services/providers stocks are doing well (BBBB)... well enough to not be penny stocks.
How many sources of revenue stream do they have..... Short this into the single digits, nothing but hype on ipo day....
I started thinking about this too. But then I did the math. The software costs about 300 bucks. Now multiply that by how many customers they could possible have. Every year just over 1 million americans learn a new language (the figure is something like 1,080,000) So 300 bucks time a million and thats 300 million bucks if they take 100% market share. Now we know not everyone is going to learn with rosetta stone, but assumming even 10% learn, thats 30 million per year. Then you gotta figure in the people that will buy the software and just put it on the shelf and not learn. This is equivelent to people that buy gym memberships or bowflexes and never use them. And remember, rosetta stone can be used in any language, so they are not limited to selling to americans. They can sell to the world. Chinese that want to learn english alone is a huge potential windfall of cash. (of course Im sure that it will get bootlegged in china and rosetta stone wont get any of the cash.) I mean the product is already there, there is really no more developing and all they gotta do is spend their money advertising and selling it. I think rosetta stone could hit about 125 per share in the next year.
^^^^^^^^^ i agree could have bought in at 23.00 a share. now it is 27.00 could be a solid mid-long term buy. I wish I did buy it
As someone that actually spent years learning languages using different tools including RS i don't think it's worth a spit.
I own neither CROX or RST but there is a big difference between the two. I would not want to take a short position on RST. Only a fool would be dumb enough to try and short RST.
RS is all hype. Why would someone pay $300-500 for language software when there are proven products such as Pimsleur for a fraction of the price. RS is also more focused on vocabulary rather than conversation, which isn't really helpful in the real world. Also, most people will simply download the software rather than buy it, especially in foreign markets. This will be a 6-8$ stock next year, make my word. Check out some of the reviews online, most people are not impressed with RS as a language learning tool.
not interested in learning a new language. 99% of the populace hasn't even mastered English. ya know ya know ya know