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Subject: [Fwd: No. 33-7606A; File No. S7-30-98]
Author:  obwon 
Date:    11/24/98 4:57 AM
     
     
obwon wrote:
> 
> As the world of electronic information makes it easier to communicate, 
> so to does it lower the barriers and costs of 'promoting' stocks and of 
> course for offshore entities to offer investments from beyond the reach 
> of U.S. Regulative Authorities.
> 
>   Thus, it reamins that non-reporting off shores stock and penny stocks, 
> escape much of the scrutiny they deserve, and are therefore able to reap 
> huge sums from investors while operating below the regulatory
> threshhold.
> 
>   It would therefore probably be wise to  implement a program that would 
> require at the very least somekind of official reporting from all
> companies selling securities within U.S. Jurisdictions.  I would as a 
> minimum suggest that even the smallest company could or should be
> required to file basic minimum reports quarterly listing such things as 
> float/outstanding share size, sales of treasury stock and private
> placements, insider sales.  As well as their once yearly audited 
> financials.
> 
>   In otherwords a basic 'skeletal' report, but one that could be relied 
> upon better than the 'catch as catch can' reports investors recieve
> now.  At the same time as we recognize that reporting requirements, if
> too detailed are too burdensome for small companies to bear, there comes 
> a point in time where trade off's have to be made to protect investors
> from scams which have been proliferating.  Even the most abrieviated
> official reporting requirements will have a substantial chilling effect 
> on the perpertrators of such frauds.  As well as providing a level of
> pretection and a source of reliable information to arm the wronged 
> investor with.
> 
>   Towards the future, going forward into the paperless world of
> electronic filing and data handling, I can easily forsee a day where
> powerful analytical engines can scan the masses of filings and identify 
> those that bear watching, before investors are bilked of their money.
> 
>   Thank you for your time.
>   M. Burnett
>   600 West 204th Street
>   New York, New York 10034