Rosetta Stone (RST) had its opening day on the NYSE and it was a big one. One of the best IPOs in a long time. Why?
They are in a good market - the language learning market is fairly hot and it's growing.
It's at the right time - I know, everyone speaks English so there's no need to learn another language. Well ... when the whole crowd is thinking one way, it might be time to start looking in the other direction. You need every edge to compete and having command of at least one other language can help you do that.
Brand recognition - Rosetta Stone has it like nobody else.
Reliable and growing US sales but they are expanding aggressively into the global market. This is where they can see some really good growth for the next few years.
So, long-term prospects for the stock appear to be good. I'm not trying to rewrite history here. I thought they were crazy to do an IPO now and I said as much. I couldn't tell you why it worked so well for them.
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