Over the weekend, news broke that Gary Chouest is dropping his planned purchase of the New Orleans Hornets in order to focus on his marine vessel business. Recall that, on October 28th, the UIB released an USTOW based on the following logic:
"The thesis is more about Hornbeck's competitor than themselves: Edison Chouest. See, Chouest is owned by Gary Chouest. And I mean OWNED. Privately held. He gets lots of money. Owned. Well, Mr. Chouest is a minority partner in the New Orleans Hornets, and is a known superfan. He has also been in the process of purchasing the remaining share of the team from George Shinn for months now. This process was supposed to happen during the offseason, but has dragged on into the new season, which began last night. Clearly, these activities will be a distraction to Chouest as the new season starts, and who will profit from Chouest's ADD in the form of higher market share? Hornbeck Offshore Services."
Clearly, this thesis is now broken. Fortunately, HOS closed on Friday up 7.94% since the USTOW was issued (as an aside, we plan to "issue" or "release" USTOWs, like it's a fatwa or something, because it sounds cool). In fact, that is about 115% annualized.
So, time to cash out on HOS. Also, you're welcome.
Special UIB shout out to friend-of-the-blog STM Uptown, for bringing the Chouest news to our attention over the weekend. Thanks, brah!
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