Date:    12/08/1999  3:10 PM

Subject: S7-24-99

     
     
  Dear SEC:
     
  I am writing in regards to the proposed law concerning the short
selling of OTC-BB
  stocks(Proposal # S7-24-99). The naked shorting of OTC-BB stocks
should be eliminated.
     
  One of the main reasons why ?penny? stocks are so risky and volatile
is not solely because
  of
  the companies themselves, but because of the rampant naked shorting by
market makers
  and
  offshore brokers, mostly without having to borrow the shares and
without "up-tick" or any
  other
  limitations.
     
  This activity goes unchecked everyday and must be dealt with
accordingly. Unchecked and
  out-of-control chaos and deception seems to run rampant day after day.
     
  Unregulated Shorting is used as another weapon against bona fide
investors who are
  squuezed out by unscrupulous manipulators and shorters.
     
  The abolition of naked shorting in conjunction with the requirements
of being fully reporting
  will
  ensure a more fair and equitable market for investors and companies
alike, a market where
  a
  company's true value is reflected in the price and not distorted,
suppressed or inflated
  artificially by manipulation.
     
  Of course, much more needs to be done but finally, in my opinion, we
are getting some
  action
  and regulations to protect investors a lot better. Keep up the good
work ! It is needed !
     
  Respectfully Submitted,
     
Mylan R. Hart
     
     
  ( Mylan@zaicomm.com)