Tuesday, November 25, 2003

Mary Cummins comment to the SEC


My comment to the SEC on a proposed rule for short sales

From: MMMARYinLA@aol.com
Sent: Tuesday, November 25, 2003 1:48 PM
To: rule-comments@sec.gov
Subject: File No. S7-23-03

I have read a few articles about the new shorting regulations and would
like to comment. I believe that in order to have a balanced market the
investor should be allowed to play the market up and down equally with
the same set of rules. If there are not enough shares to borrow to cover
short positions, a short squeeze occurs and the price shoots up artificially
to the benefit of the "long" investors and companies. This balances out the
market. Someone can also borrow shares to play them in an up trend through
leverage. Borrowing is borrowing, if one plays it up or down. Investors need
to be able to play markets up and down. That's capitalism, that's the
American way.

I also believe that it is the broker who is responsible for processing the
paperwork and following the rules. The investor just puts in an order and
has no idea how that order is executed or what regulations are involved. With
that said I have a few more comments about the entities who are begging the
SEC to stop all this "criminalistic naked shorting that is taking food out of
orphans mouths."

The people who have filed suits over this naked shorting issue are not newly
formed innocent small companies selling shares to raise capital for legitimate
business activities. They are not 100% owned by Joe average investor. They are
owned by insiders, investment companies, stock promoters and major risk takers.
Take a look at some of these companies. Nanopierce NPCT is run by a CEO who
was sued three times by you, the SEC for fraud. The stock promoters were also
sued by the SEC for their fraud in hyping the stock price up. It's worth about
.001 yet went to over $6. Why didn't the company complain about that "artificial"
movement? Because they paid promoters to move the price up as per your own
lawsuit. A large investor is currently suing the company for fraud. Based on
what I know, this company is guilty of securities fraud. This company has
promised profits since 1999 and is on the verge of bankruptcy without meeting
any of its projections. Most of their press releases have turned out to be
unverifiable hype if not outright lies. They even agreed to do toxic funding
knowing full well that their shares would be shorted. Insiders may have even
shorted the shares themselves through holding companies. They used this shorting
to help fund the company. Without shorting, the company would be bankrupt and now
they complain? The SEC has allowed them to fraudulently hype the share price UP
yet now the company asks the SEC to make it even more difficult to short the price
down to it's true value. That is not a balanced market. That is one doomed to
collapse on a larger scale.

There are others on this list which I believe are total stock scams. They have
hired many stock promoters to hype the share price up fraudulently through
newsletters, message boards, "investor conferences," and direct marketing. These
promoters are telling people invested in these stock scams to copy/paste their
comments to the SEC en masse so you will be influenced artificially to change the
regulations. This is the same way they artificially hype share prices up. Please,
read these comments individually.

I follow stock scams so I can alert authorities and investors so the true few
innocent investors won't be scammed. I watched an elderly gentleman invest in a
total scam believing all the hype only to lose his entire retirement fund. Last
I spoke to him he was considering suicide over telling his wife that he lost all
their money. He was never heard from again. I have been sued by these fraudulent
stock promoters just so they can try to silence my honest information about bad
investments. I don't even short these stocks or profit in any way. I also helped
the SEC in two securities fraud cases. If anything, the SEC should be going after
these scamsters even more.

Shorters tell the public the truth about stock scams and loser investments.
Shorters are generally sued frivolously because of releasing honest negative
information. They are doing a service to the public. They regulate the markets
better than the SEC. They should be allowed to play the stocks down just as
others are allowed to play the stocks up. There must be financial gain in order
for them to bear the huge risks and costs involved in releasing negative news.
Why in America do we think that we should only speak positively. That is what
causes our stock market collapses. It's bad enough the major news distribution
companies will not allow negative news to be released about any company unless
it comes from the company itself or they give expressed permission. The US
investor is only allowed to see positive news. All these factors make shorting
a necessity in these markets. If markets were allowed to go up and up, the entire
market would eventually collapse. We need shorters to let out a little market
steam from time to time so the entire market doesn't explode and collapse. Please
allow the markets to be balanced naturally by honest capitalism. It will help
sustain a healthy market and will help all investors in the end.

Mary Cummins
"Just say NO to stock scams"
MMMARYinLA@aol.com
Los Angeles, CA
_____________________

http://www.sec.gov/rules/proposed/s72303/mcummins112503.txt


Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.