I started thinking about this too. But then I did the math. The software costs about 300 bucks. Now multiply that by how many customers they could possible have. Every year just over 1 million americans learn a new language (the figure is something like 1,080,000) So 300 bucks time a million and thats 300 million bucks if they take 100% market share. Now we know not everyone is going to learn with rosetta stone, but assumming even 10% learn, thats 30 million per year. Then you gotta figure in the people that will buy the software and just put it on the shelf and not learn. This is equivelent to people that buy gym memberships or bowflexes and never use them. And remember, rosetta stone can be used in any language, so they are not limited to selling to americans. They can sell to the world. Chinese that want to learn english alone is a huge potential windfall of cash. (of course Im sure that it will get bootlegged in china and rosetta stone wont get any of the cash.)
I mean the product is already there, there is really no more developing and all they gotta do is spend their money advertising and selling it. I think rosetta stone could hit about 125 per share in the next year.