I bought 45 shares about $25 a share. I got into this company because I believe in their product and their advetising scheme. I don't know about you guys, but to me it seems near impossible to find great analysis of this company and its future, which scares me a little. The first report since the IPO comes out May 11th if I remember right and from there I can gather my target sell price.
I see this as a growth technology company that has a solid niche in the market and has plenty of room to expand, but where is it's true value? I see this company as a $40 per share stock, but it is pure speculation. I don't know how much is hype, and I don't know how many return customers will buy more languages at ~$500 a program. If they pulled some contract deals where their product came with new computers or started to heavily intergrate into global companies I would feel safer. I just don't see the stability or a top and bottom of their growth. From what I have read people compare this to Google, but I don't see the relation. Google is advertising driven and Rosetta Stone is software. Is it just me of is RST more like VMWare. I plan on holding for a few months for developments and anaylsis of the report being released, but if I had more diversity in my portfolio I would buy more of this company on speculatory growth and aggresive advertising. I think long term there advertising could rapidly expand their overseas market share, but I am not an expert in the least bit. I have no idea how people in China, India, Russia, Brazil and elsewhere would respond to a $500 language program. From being in Brazil multiple times in my life many of the educated business class citizens know multiple languages already and those with less moeny and education just get pirated versions of software. This may limit future over seas sales ceiling, but their presence surely could be felt.
You don't think companies and governments in foreign countries won't use a language learning program in a emerging global economy? What about Walmart and MacDonalds neither of them sell great products, but both are a hit in China. It's not really the quality of the product, which I do think RST makes a good product, but the demand for what they sell in the market.