Rosetta Stone Inc. (RST): Nierenberg Investment Management Likes Osmium Partners’ Decision To Go Activist

In a newly amended filing, Nierenberg Investment Management, led by David Nierenberg, disclosed that it welcomes John H. Lewis’ Osmium Partners’ decision to convert its stake in Rosetta Stone Inc. (NYSE:RST) to activist from passive. According to the filing with the U.S. Securities and Exchange Commission, Osmium Partners changed its filing status for its 9.95% stake in the company to activist from a after the end of trading on August 21.

Rosetta Stone Inc

Nierenberg Investment Management owns 1.69 million shares of Rosetta Stone Inc. (NYSE:RST), which is equal to 7.9% of outstanding common stock. In the filing, the hedge fund stated that it likes Osmium Partners’ conversion to active engagement in Rosetta Stone Inc. (NYSE:RST) for several reasons, including the fact that Osmium Partners focuses on internet commerce, social media, and digital marketing, where it has a deep expertise. In a recent filing, Osmium Partners reported ownership of 2.13 million shares of Rosetta Stone Inc. (NYSE:RST)’s common stock.

Further, the hedge fund of David Nierenberg notes that Osmium Partners is now more actively engaging with a number of their portfolio companies.

“This summer their activism produced substantial change and stakeholder benefit at three of their portfolio companies: The Kroger Co. (NYSE:KR) offered to buy Vitacost.com Inc. (NASDAQ:VITC), where Osmium had placed a colleague on the board of directors; Realogy Holdings Corp (NYSE:RLGY) offered to acquire ZipRealty Inc. (NASDAQ:ZIPR), where Osmium had filed a 13D and worked to maximize stakeholder value; and Osmium’s slate of four directors won 88% of the votes cast for election to the board of Spark Networks Inc. (NYSEMKT:LOV) and the board changed the focus and executive leadership of the company,” Nierenberg Investment Management added.

Moreover, Nierenberg Investment Management said that it expects that Osmium Partners might bring similar passion, urgency, energy, and impact to matters of corporate governance, focus, and execution at Rosetta Stone Inc. (NYSE:RST).

Rosetta Stone Inc. (NYSE:RST) is engaged in providing technology-based language-learning, reading and brain fitness solutions. The market value of the company is $190.2 million. On Tuesday, shares of the company traded down by 0.67% to $8.87. Analysts have the consensus average target price of $13.00. The consensus average recommendation is ‘Overweight’.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!