Rosetta Stone's Secondary Share Offering Isn't as Bad as It Sounds

Language-learning software company Rosetta Stone announced last week that it would be offering 3.5 million shares in a secondary offering, at $16 apiece. When word of the offering hit the news, shares were promptly punished, falling 12%.

But this is no ordinary share offering, says Motley Fool contributor Brian Stoffel. Listen in to why the company actually won't be making any money from the deal, and why it really shouldn't affect anyone's long-term thesis for the company.

The changing face of retail
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Rosetta Stone itself is in the middle of this shift, as it closes down its traditional kiosks in favor of cloud servers.

Only those most forward-looking and capable companies will survive this change, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

The article Rosetta Stone's Secondary Share Offering Isn't as Bad as It Sounds originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of Rosetta Stone. The Motley Fool recommends Rosetta Stone. The Motley Fool owns shares of Rosetta Stone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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