Rosetta Stone (NYSE:RST)

MizzouEric (40.95) Submitted: 3/1/2011 7:37:52 PM : Start Price: $13.38 RST Score: -1.00

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.