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Rosetta Stone, Inc. Message Board

  • Harry_Wild Harry_Wild Dec 11, 2009 7:31 PM Flag

    Look Through 10K Report!

    Heres what I found that is interesting: comparing 3rd Quarter 2009 vs. 3rd Quarter 2008.

    Net income (loss) $ 5,303 $ 6,021 $ (718 )

    After the IPO; they had less income, much more expenses and a less positive outlook for their products. There sales did increase about $10 million; but they lost more to expenses if you can believe that. In other words; they do not know how to sell their product to product maximum profit if you compare the two years. All the expense categories went way up to; including R&D! Of course, top management salary were off the chart! No surprise here!

    I made the right decision to short this baby!

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    • BOD will not make any changes to management because it only 9 months or so since the IPO and the founder is the "key" person - Tom Adams - CEO. The CFO might be used as a escape goat since he openned up his mouth in mid August and case the stock price to drop from mid $31 down to $19 in a couple of days. Then in November in the CC they both said that they did not see sales improving for the holidays. Double downgrade the next morning! Also they said something about controlling expense?? not clear. It been a ride down from IPO to now! Hit high of $32 and now it at the bottom or close give or take a point! Still see more to come in February when they will take about 4th quarter and year ahead. They love to be cautious and talk the stock down. They - being new at the CC game will not be excited about the company or it products. I bet that it fall.

    • If management changes are in the plans for 2010 this stock will go back to 30s in 2011 - need need CEO for sure who spends in the right areas and adds new products -

    • Rosetta Stone will be successful because it is a superior language learning method. Shorts may have their way for a short time, but watch out....

      • 1 Reply to nbtcp
      • For once I agree with Harry.

        RS doesnt know how to sell the program.
        RS believes (as of a few years ago) that the target purchaser are American travelers w/in a certain age.

        They have never taken into account all of the non-English speakers in the US wh/ is a larger market than English-speakers learning Spanish.
        There never has been any worthwhile advertising towards Spanish speakers (or any other market).

        RS believes they sell only 1 program, but the reality is there are 31 DIFFERENT programs w/ 31 different markets.

        I know for a fact RS is pushing the English program in Germany wh/ is a BIG mistake as most younger Germans speak English fairly ok to get by.
        They should be pushing German to all the Turks, Greeks, Indians & E Europeans who need to learn German.

        Rs said they didnt make their numbers in 3rd quarter because "their ads didnt have the effect they planned".
        Well well, I havent seen any new ads out there, same ol bs ads.

        RS is destined to fail unless RS understands the various markets/possibilities for the program, and quick.

        They also need to make some changes to that 6 mth guarantee as well.
        Nothing stops anyone from buying (must purchase directly from RS) the program and returning for full refund after 5.5 mths.

        Totale is also a waste of R&D imo.
        Live Mocha does the same for free.

        its 1K right now to get ONLY Levels 123 (NOT 45) along with totale. So one has to pay 600$ more to get the same as LiveMocha.

        Speaking of R&D, RS never created an app for iPhone. Way to miss the boat there, the same info on the demo CDs would be perfect for a demo app.
        They are looking now for an in-house developer now it looks like. 3 years too late.

        While were at it, RS also pits the kiosks against the online RS store & also the ebay official store. Way to really take care of their kiosk employees who work for min. wage plus commission (and also get charge backs from customers who return it after 5.5 mths). It's very difficult to get a little ahead unless one works at a great location.
        They have also greatly increased the number of kisosk too the past few mths. Why do that if no one is buying (and it costs more to sell a box from a kiosk than from online).
        Makes no sense to me....

        Plain stupid lack of oversight/communication.

        To me, RS has no future unless they get sold to someone who has the money & marketing to make it what it truly deserves to be.
        if they cant get their s--- straight here in the US, how are they going to expand across the world???

        Until then, it's just going to go down.
        Just look at the daily volume these days... look at some of the stupid worthless posts on the forum here.

        It's clear to me that the market can care less about RS & investors as well.

        4th quarter numbers are going to be really interesting, as I have seen/heard zero new ads & havent seen any changes to the status quo.

        Would be an ideal fit for Apple

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