How to win big on Slater and Gordon, page-70

No you are wrong there......people will put there money (whether cash or borrowed) at risk if they believe it is possible to make a profit ie: the SP continues to go higher. Also don't forget the "business case" for the PSD transaction....it was going to push SGH in the ASX 100 & be greater than 30% accretive. Now you don't have to be a genius to work out that if all had gone to plan the SP would have been marked up by the instos (super funds etc) when buying in due to being in the ASX 100 and then carried to a higher level again with the exuberance of the retail investors jumping on after the initial mark ups. Unfortunately for AG & SGH management he didn't count on some shrewd hedge funds that obviously knew the PSD very well and realized that it was a "pup" and the rest is history.