Subject: Naked short sales

May 14, 2009

Remember NAKED SHORT SALES dilute the share count. A 5 million share outstanding company can get Naked Short Sales of say 3 million. Now there is 8 millions shares for trading purposes because they were not properly borrowed. This drives the price down making many feel the company is doing poorly and raising capital is very difficult... Therefore: ALL SMALLER CAP COMPANIES NEED SPECIAL PROTECTION YOU DO NOT ADDRESS THIS AT ALL!!!!!!!!!!!!!!! THE SEC HAS BEEN COMPLETELY NEGLIGENT ABOUT THIS IN THE PAST. NO ENFORCEMENT MAKES THE SEC LIABLE

Bart Blout