From: Dan Nguyen [dannguy2@voyager.net]
Sent: Thursday, July 05, 2001 12:56 PM
To: rule-comments@sec.gov
Subject: Fair Disclosure Regulation

Plover, July 5, 2001

Ladies and Gentlemen,

Something is wrong with the Fair Disclosure regulation.  The regulation has a noble goal of providing an
equal opportunity for small investors.  But instead, it has helped to wipe out millions of small investors
because it has put so much power in the hands of short sellers.

Management cannot freely disccuss the financial situation of the company, thus short sellers are able to
circulate negative rumors about the company.  On the other hand, analysts who are recommending the buy side
have to get the reports approved by supervisors and NASDAQ authorities.  Hence, there is a timing gap and a
power transfer to the short sellers.  Stocks simply crash at the hint or rumor of bad earnings, true or not
true!

I think there is a real risk that the stock market cannot rally because of the inequilibrium of power
between buyers and sellers.

Please, notice that stocks keep crashing on the old news.  That's the danger.  This behavioral action is
completely different from the past.
 
Please rescind the FD regulation to restore balance to the market and for the sake of the long term health
of the economy.

Please at least have some experts analyze the relative power of buyers and sellers.  I also like to let you
know that I'm doing an both buying and selling with successes.  But looking at the way the market trades, I
defintely see that there is a definite risk to the financial markets because of the excessive power of the
sellers.  The weakness of the financial markets will affect its place as a source of capital and hence it
will have a negative impact on the health of the economy.

Thank you.

Sincerely,

 
Dan Nguyen.