Peak Piratery: Time To Walk the Plank?

by Johnny Debacle

We have been long piratery since our initial report from December (see “Piratery FKA Piracy: Primer to Investing in Cutlasses, Rum and Pillaging“). But the recent cresting of Pirates of the Caribbean 2: Dead Man’s Chest gives pause to our bullish sentiment.

Are we reaching the point of Peak Pirate?

  • In the difficult Indian ocean piratery market, the new Somalian Islamist government has seized a pirate stronghold.
  • Pirates of the Carrribean 2 is almost through its theatrical run, and it will likely finish as the 6th all time grossing film in domestic box office history, a height unlikely to be reached by subsequent entries in the series.
  • The entrance of low cost (and low quality) kitten pirates has proven to be disruptive to pirate operators, creating a low margin environment.

Mass adoption is the ultimate indicator of a fad or an investment theme peaking, and this article paints a peak pirate picture:

Across the United States, from New York City, to Portland, Oregon, the pirate movement has spawned pirate bars, social circles, bands, festivals, magazines and apparel.

Devotees are attracted by pirate fashions, the spirit of rowdiness and the opportunity to engage in anti-establishment behavior. It’s unclear where it began, but pirates are clearly in vogue.

“We are in the throes of its real peak,” said Hawkins, 35, who performs as pirate Luc the Lucky in Portland. “Pirates are like the new cowboys.”

The new cowboys? It doesn’t get any gayer than that.

Recommendation: We are rating piratery a firm “Do not buy.”

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