National Association of Securities Dealers, Inc.
San Francisco, CA

Dear Sir:

I recently tried to purchase some shares of Leisure Concepts (LCIC) listed on NASDAQ. I asked my broker what the stock's bid and ask price was. He told me the bid was $2 1/2 and ask was $3 1/4. For someone that bought this stock with that spread, that's a commission to the market maker of over 20%. Don't you have a markup maximum of 5%?

There are 2.9 million shares outstanding which means that the market capitalization for this stock is only about $8 million. The weekly volume averages 26,000 shares for a yearly volume of 1.3 million shares. Bottom line, the shareholders of this stock pay the market makers almost $1 million a year (the spread times the number of shares traded) to make a market for Leisure Concepts. $1 million is 12 1/2% of what the company is worth and the investors pay that every year.

With all the news out about the problems with NASDAQ spreads I have become very concerned about getting a "fair price" when I buy a small capitalization stock on NASDAQ. To help me not misjudge the NASDAQ stock market I ask you to explain to me, in numbers, why Leisure Concept's stock demands a 3/4 point spread? If you can't, can you relay my request to one of Leisure Concept's many market makers and ask them to explain it?

I would like to emphasize that I'm not saying Leisure Concept's stock does not justify a large spread. What I'm saying is that I want to understand why it does.

Getting a reply from you which would explain why this stock requires a large spread would help me believe in the NASDAQ stock market a lot more then seeing a commercial on TV simply stating that NASDAQ is the stock market for the next 100 years.

Thank you very much for your help.

Sincerely,