Good morning my dear readers,

I blinked my eyes, and Friday appears again. Been such a hectic week, even though I do not drink, I have half a mind to spike my coffee today 🙈.

On a more serious note, I am very happy to inform you that your Negen PMS's trailing 5yr CAGR has touched +33.74% as on Jan 31st, 2024.

A lot of recent investments in the Wealth Management space and also general Special Situations worked out okay.

Enough of this, lets get to today's topic.

I had been itching all week to write about this incredible, real life special situation.

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Ryan Reynolds the genius and a special situation to remember.

Yes, Ryan Reynolds, the Hollywood actor, well known as the DeadPool actor.

He went out and bought a Football team called Wrexham....and what happened next was nothing short of a WONDER STORY.

(Ryan Reynolds at the Wrexham Football ground).

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Lets rewind back a bit..

Wrexham has the oldest International Football stadium in the world.

Back in its glory days, Wrexham was a very well known club.

But its fortunes turned for the worse, the club was about to go into bankruptcy and it needed the people from Wrexham city to chip in with whatever they could to save the club from going into Liquidation.

*(You need to understand, Football is EVERYTHING for the regular folks in the UK. Its more than Life and Death).

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Anyways,

So Wrexham was bleeding, badly. The club was in losses, all the sponsors left, working capital was a massive issue.

As a result, they could not attract good enough Players and Coaches.

Hence, the Club kept on getting Relegated every few years and landed up at the BOTTOM of the English Football leagues (Division 5).

*Relegation is a very interesting topic in English football, the worst 3 teams of every annual season are relegated to play in the lower leagues. And the best 3 teams are Promoted.

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Basically, Wrexham was in SHAMBLES and it needed someone to save them.

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Enter Ryan Reynolds.

Ryan Reynolds has by now established himself as this genius at innovative marketing.

He has already sold his GIN company for $600 million to Diageo and he his innovative marketing has turned Mint Mobile into a Billion Dollar business.

(Just how in the stock market, we see the new promoter's background when they buy a struggling listed company to turn it around

You just know that a person who has 'been there and done that' has a high chance of success to repeat the 'winning process').

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First thing that Ryan Reynolds does,

He hires a very experienced advisory committee to help him navigate this new challenge.

(This is exactly what an experienced new promoter does first, he hires a very experienced and independent board of directors from the field to HELP HIM make critical decisions).

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Second thing he does,

He fires the previous Manager.

He goes into Division 2 and buys the BEST manager from that division to come into the bottom division (Division 5) where Wrexham are currently sitting.

(Basically, hes going in and replacing the entire top professional management who weren't getting results and he bought in the best new CEO who was very successfully running a business, significantly larger in size compared to Wrexham).

*This is special situation, at its finest. Special Situations are everywhere around us, even outside of the stock market, we just need to tune our senses to see what others cannot see*

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Third thing he does,

He brings in two of the best strikers from the above divisions to help the team score more goals.

(Again, just like the new promoter coming in and upgrading machinery, doing some expansion and bringing in the latest tech).

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Fourth thing he does,

Ryan Reynolds uses his celebrity stardom status and insanely high social media following to put WREXHAM on the MAP!

He goes on a promotional over drive to help the Club generate more CASH to invest in better players and facilities.

a) He films a documentary on Wrexham, LIVE. It helps him generate millions from Hotstar App.

b) He is able to bring in Expedia, Tik Tok and Aviation Gin to become the sponsors of Wrexham.

c) He is able to sell the naming rights for the Wrexham Football ground for a massive 10 million pounds.

(Thats massive money for a club in the 5th Division of English football).

**This is just like the experienced new promoter in the stock market using all his 'old industry contacts' to get new contracts and orders for his new, taken-over business.**

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Conclusion:

Ryan Reynolds created HISTORY. Within 2 years, Wrexham got PROMOTED and are now in Division 4.

This is one of the biggest success stories in world football and an extraordinarily BIG DEAL.

Real Conclusion:

If Wrexham was a listed company, it would have been a multibagger.

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The takeaway really is that since I am obsessed with special situations, my mind is just trying to uncode this in everything I see or hear.

Same goes for you, its important to become obsessed with your specialty, thats the only way to succeed in this highly competitive world.

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That is all from me today my friends, I literally have no stamina to scroll back up and check for spelling and grammatical errors.

(I am typing but my eyes are shut).

Btw, Valentines day went yesterday, I remembered it and took my wife out for a movie and won a lot of brownie points.

Please tell me you remembered it was 14th Feb yesterday and won some brownie points as well. 😎

My Best,

Neil Bahal

Founder

Negen Capital

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