PCCW (used to be HK Telecom when I joined it 2.5 yrs ago) just did a 5 shares for 1 consolidation to avoid delisting.


My 2c worth on why MS has split is that Bush & admin have been cleaning the backroom (Enron's, worldcoms etc:), in advance of the Iraq invasion (to protect US [oil based] economy) in prep for the next big wave of global business.

Bush 1 did *EXACTLY* the same - prior to Gulf 1 - Republican admin got aggressive with inefficient US business - auto workers & mfg (as #1 example) - US used IT tech advances to shift decision making down to Knowledge Workers - flatten out organisations to make them efficient - chip & memory mfg - electronics - US forced US business to either become more efficient or buggar off (go broke).

Remember the climate before Gulf 1 - Japan seemed to own 1/2 the world, was buying up US assets, golf courses, media, real estate. US was in deep consternation that Japan was about to win Economic WW 1. Repubs prepared the US, laid the foundation for recovery, then started Gulf 1 & got Saudis & Kuwaitis to pay for it but ***PUT JAPAN INTO RECESSION*** where it has remained ever since - during the lead-up to and some aftermath of Gulf 1, people stopped flying & stopped buying & Japan not realising it was 1/2 of the target of Gulf 1, kept manufacturing and doing so with its classic hierical business structures. The Japs were flattened because US had pared down business structures & costs & thus could survive the 'induced' recession.

What do you think repubs are up to now - REPEAT STRAT of GULF 1.

So the one big change in this strategy compared to prior (Gulf-1) is that repubs have paid a lot more attention to economic recovery this time & thus don't expect to lose the next election like the did after Gulf 1.

Practice makes perfect

Cheers

Doug Marker