From: Ron Pearce [homes@ronpearce.com]
Sent: Wednesday, October 22, 2003 10:18 PM
To: rule-comments@sec.gov
Subject: Regulation SHO

Hello,
 
I was thrilled today to listen to your new proposals on "naked short selling". 
I my view as an investor and trader for over 8 years is that it has been long 
overdue. I invest mostly in OTCBB NASD stocks along with a few "pink sheet". It 
will be very gratifying to finally see these "shorts" on a level playing field 
with the "longs".
 
Many times I have invested in a stock only to watch it plunge rapidly for no 
reason other than naked shorting by those who know if they "whack" the BID 
enough...the stock will never recover and they will never have to deliver.
 
To look at it from a long's perspective, how much stock would I (or you) buy...
driving the price higher and higher...if we knew we would never have to pay for 
it? What is the difference?...the "shorts" get the money up front and never have 
to  cover due to failed deliveries. Why shouldn't we longs get the stock and not 
have to pay for it... until we sell. If we never sell...we never pay for it. Fair 
is fair right? Sounds ridiculous...doesn't it? So is unabated naked shorting. It 
has cost me and the companies I invest in dearly and, your new regulation SHO 
should go a long way toward righting this terrible wrong. Thank you for your time.
 
Sincerely,
 
Ron