Mysterious Orange Bubble on Live Rock! Please ID.

[Snailpuffer]

Hey All,

I found this mysterious orange bubble like "Thing" on the Live Rocks... When I touch it, it contracts... Here's a picture of it...

Please ID and Thanks in Advance All!

http://i39.photobucket.com/albums/e157/tnkw/IMG_0181_zps8f8abbe4.jpg

[Nate]

Sea squirt or tunicate

[KPG007]

Baby nem? When I peeled a nem off some live rock, I had two babies like this from the foot that was left behind.

[Snailpuffer]

Thanks Guys! We'll soon see when it grows big... I'm leaning more towards the baby nem as the tip of it looks rather round :P