Good morning my friends,

Let me tell you a funny Friday story today.

A story of 'Scuttlebutt backfiring' in a bad but funny way for my friend.

*This was the situation for my friend after the scuttlebutt.

~~

Some years ago, ABB announced a double Special Situation, a demerger + promoter change.

Mind you, this was peak COVID time.

~~

My friend bought ABB, with full confidence, knowing that there is immense value in the ABB Special Situation, especially as Hitachi was buying the demerged entity.

~~

But as he built his position, news emerged that a high profile deal was cancelled.

So he called Europe, to the ABB headquarters to check if this Hitachi - ABB deal was yet on.

He then got redirected to the IR there and he was informed that "People are dying across Europe, I don't know if anyone will be left alive at this rate"

My friend panicked and sold his position entirely.

~~

The rest is obviously history.

COVID subsided, the entire world did not die and the ABB double Special Situation of Demerger + Open offer by Hitachi was a fantabulous SUCCESS!, as predicted by my friend.

But due to his eagerness of scuttlebutt, he missed out entirely on this multibagger story.

~~

Conclusion: Sometimes, **** happens. There are so many such ridiculous stories of 'near misses' in the market.

But on averages, scuttlebutt works. Keep following the process that works for you.

______________________________________________________________________

By the way, India is booming and how.

Across sectors, I am feeling true Animal Spirits in the promoter community, especially in the small and small midcaps.

*(Speaking of Animal Spirits, the movie Animal was funny but nice. Ranbir Kapoor really outdid himself).

We need to get on the ground and visit tier 2, tier 3 cities and meeting founders there. Something really amazing is happening.

~~

Stay invested, regularly book profits and think long term at a portfolio level.

Ps- We are working on two deals in our Cat1 Start-up Fund, one in the Diagnostic space and other in the Female & Baby Hygiene space.

(Will update here later, once we launch it and close it).

My best,

Neil Bahal

Founder

Negen Capital

Disclaimer: This newsletter is for educational purposes only. While the newsletter discusses just general market insights and past case studies, still, the stock market is a very risky place which can result in losses.

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