Google Inc. (NDAQ:GOOG) made an interesting filing on July 20th that is only now starting to garner attention after the WSJ covered it. The filing is a 40-APP, which is an "application for exemption and other relief filed under the Investment Company Act of 1940". Although the document is only a automated notification generated as a result of a paper submission, it does highlight Google's concerns.

The Investment Company Act requires any company that holds more than 40% of their worth in securities to disclose their holdings - as they are considered in the eyes of the SEC as an investment company/fund. Google currently has just over $14 billion in assets with almost $6 billion of that in securities - unfortunately for Google, that's 42%. The company also has $4 billion in cash! Google currently holds primarily U.S. Governement bonds, but is seeking to move its money into higher yielding municipal bonds and high-grade corporate bonds. Notably, companies like Yahoo and Microsoft obtained similar exemption which allowed them to utilize higher yield investment tools.

It is unclear as of now whether or not Google will be granted the exemption. If they are not, a look into their investments might tip investors and their competition off as to future acquisitions and other intentions. What does this mean for Google investors? Well, if they are able to gain the exemption, it will mean increased investment returns for the company. These returns could be substancial given the large amount of cash and securities that the company has invested. If they are unable to gain the exemption (which was Yahoo's problem before they tried a second time), they may be forced to reveal their equity holdings, which would give investors a good look into possible acquisitions and areas of interest for Google. Either way, this is definitely something to watch.

Related Companies & Competition
Yahoo! Inc. (NDAQ:YHOO)
Microsoft Corporation (NDAQ:MSFT)
Baidu.com, Inc ADR (BIDU)

Science Applications International Corp, or SAIC, announced yesterday in an 8k filing with the SEC its plans to go through with their restructuring and initial public offering. SAIC is one of the world's largest private companies, providing technological products and services to various private and governmental agencies - the company is most well known for its close ties to the CIA and Department of Defense. SAIC initially planned on going public in the first few months of 2006; however, they delayed the process in December after it incurred unexpected costs from the a contract with Greece, which resulted in a $115m loss.

In a memo, the company outlined the upcoming IPO process:

"We will file an amendment to our IPO registration statement with the SEC in early September that contains a prospectus including updated financial statements for the first six months of fiscal 2007. The prospectus will also show an initial or preliminary IPO price range within which we expect to sell shares in the IPO. We will determine the price range in consultation with our underwriters (Morgan Stanley and Bear Stearns), which will reflect current market conditions and recent financial performance. Shortly after filing our IPO registration statement, senior management will embark on a "road show" to present information about our company and its prospects to potential investors."

When the company updates its prospectus it will give shareholders a better view of the company's current financials. With many related companies experiencing a slowdown recently, many analysts are casting doubt as to whether SAIC will be able to IPO at a price close to their June projected price of $47.28. Regardless, when one of the largest private companies on earth is going to IPO, it is always something worth keeping an eye on...

A recent report by Glass, Lewis & Co. revealed that the number of delinquent quarterly filings by companies with a market cap over $75m has hit a new high of 138 after the previous record of 120 set just last quarter. The number is about 52% higher than the number one year ago at this time. The commission attributes most of these deliquencies to the recent options backdating scandel that has hit the market, which have caused many companies to take another look at their books before releasing their most recent numbers. Over 80 companies are currently under some kind of investigation from the SEC - 48 of them have delayed their quarterly filings as a result. So far, only two companies have had prior CEOs convicted. Other reasons for the delays include restatements and unresolved accounting issues. The final impact of these delays remains to be seen, with some analysts suggesting that this will all blow over and others saying this is something that cannot be ignored.