On Thursday, Rosetta reported a first-quarter loss of 3 cents per share, better than the 8 cent expected loss, but revenue of $63.9 million lagged analysts' estimate of $64.5 million.

Shares had been on quite a run since early March, up 56% before Thursday's earnings announcement, and so perhaps some profit-taking was in order.

Perhaps the universal shelf registration Rosetta filed Thursday also contributed to the stock's drop. The shelf registration allows the sale of 8.4 million shares held by the company's two largest insider shareholders, and also allows the company to issue debt or preferred stock.

Still, at a time when value is getting tougher to find, Rosetta Stone is on my radar.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Jonathan Heller, CFA, is president of KEJ Financial Advisors, his fee-only financial planning company. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.

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