Rosetta Stone (NYSE:RST)

CAPS Rating: 2 out of 5

Rosetta Stone Inc. provides technology-based language learning solutions.

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Player Avatar MizzouEric (63.61) Submitted: 3/1/2011 7:37:52 PM : Outperform Start Price: $13.38 RST Score: -85.47

The company has a serious competitive advantage in a market that is going to grow for the rest of my lifetime. The only issue is executing on the new subscription model (which I think is the perfect response to a changing market/piracy issues.) I'm thinking a similar model to Netflix except "learning a language" wherever you go via laptop, smartphone, etc will work well. If they take care of the short term domestic problems in their business model the long-term growth in schools/foreign countries will be butter.The stock is extremely oversold right now, so I think RST is a Charlie Munger stock in that you are buying a high quality concept with a high margin of safety. Even if this new model doesn't bring back high flying profits, the underlying patent/pedagogical system is worth a significant portion of the $250Million Market Cap.

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Member Avatar goldminingXpert (29.50) Submitted: 3/2/2011 10:02:49 AM
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Do you work for Rosetta Stone? If not, you're drinking a whole bathtub of Koolaid to come to that conclusion.

"The company has a serious competitive advantage in a market that is going to grow for the rest of my lifetime."

Are you anticipating a short life? It's incredibly difficult to maintain competitive advantage in software...

Member Avatar bonjourmesamis (48.24) Submitted: 6/6/2013 9:52:52 PM
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Ever heard of Duolingo? Can learn every language in same manner. And it's free!

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