Author: "Noris; Nicole; and Billy McIntyre" at Internet Date: 06/20/2000 9:23 PM Normal TO: RULE-COMMENTS at 03SEC TO: "Burney; Jack" at Internet Subject: MM OTC BB Stock Manipulation. ------------------------------- Message Contents First, one must ask themselves why do Market Makers get to HIDE in the OTC BB market not revealing their short positions. This appears to be the main issue behind all of the problems. MMs should be required to hold a very limited amount of a short position (say 10%) which is not held by a paying customer/client. When Market Maker's have an infrastructure in place that allows them to cheat they will cheat. When they are allowed to "behind closed doors" have a HUGE short position and never made to "balance their position" in the reasonable short term, they will never correct their positions. Full discolsure of SHORT positions in ALL OTC BB stocks should be REQUIRED just like with the other markets: NYSE, DOW, NASDAQ, AMEX, etc. In my Honest Opinion I believe there has been ample evidence of late that Market Makers are manipulating OTC BB stocks. I believe that the law of supply and demand should apply. When more buying occurs a stock should go up. When more selling occurs a stock should go down. This does not seem to be occurring. I shall give two examples where I have personally been affected by MM Manipulation. The first is AREE, Arete Industries. Around April 20th, after the OTC BB & NASDAQ CRASH, AREE was around .08 cents. Since that time there has been approximately 89 MILLION shares BOUGHT and 10 MILLION shares SOLD. According to the laws of supply and demand the price should go UP, one might expect the stock to be around .11 or .12 cents if not more! After all, for every share SOLD nearly 9 were BOUGHT! Today the stock is at .046 nearly 40% down from April 20th in UNFAIR trading by MMs. I have sold 90% of my position in AREE and moved to a more lucrative position (CCAA). Since around May 10th NUZA has had around 14 MILLION shares BOUGHT and around 2 MILLION shares SOLD. For every share SOLD around 7 have been BOUGHT. The stock has fallen unfairly from .065 to .035 (in fact .032 yesterday). I still own around 280,000 shares of NUZA and to date can not recall selling any. I am divulging my positions in these stocks so as to be open and honest. Might the trading community have the same right from the Market Makers? Might they be required by the SEC to fully discolse their positions, both long and short? Sincerely, Bill McIntyre. Long Term Investor. P.S. I am CCing Mr. Jack Burney at OTC News Network simply because he educated me on how to contact you. I believe many of his recent articles should be reviewed by the SEC also as I believe them to not only be fair and accurate, but also very sincere. Additionally, I see no motivation which might exist for Jack to express these opinions other than he believes them to be the truth.