The Warnaco Group, Inc. (NDAQ:WRNC) is the most recent target of the Barington Group, an activist hedge fund seeking to "unlock shareholder value" through any means possible. In their 13D filing with the SEC on the 21st, Barington disclosed a 5% stake in the company and outlined the issues it wanted the company to address:

• the improvement in execution by the Company’s senior management team and oversight provided by its Board of Directors in light of a string of what the Reporting Entities believe to be recent operating disappointments stemming from (a) the recently announced financial restatement caused by accounting issues at the Company’s Chaps division and swimwear segment and the resulting Securities and Exchange Commission informal inquiry, (b) disruptions and excess costs associated with poor implementation of SAP at the Company’s swimwear segment, and (c) missed revenue growth and gross margin targets;
• a substantial reduction in equity grants, including stock options and restricted stock, which have averaged 5.0% annually or a staggering 17.6% cumulatively of the Company’s shares outstanding over the past three and one-half fiscal years;
• the improvement in gross and EBITDA margins, which currently trail peer averages by approximately 800 and 600 basis points, respectively, through a reduction in SG&A and corporate expenses and better merchandising;
• the disposition of non-core brands and licenses, especially in underperforming divisions of the Company's intimate apparel and swimwear segments; and
• the exploration of strategic alternatives, including, without limitation, the possible sale of the Company.

The company's stock rose slightly on the news, settling around $19 per share. The company is trading at a discount with a 0.82 PEG ratio and a 12x forward PE ratio. The company is also solid fundamentally with solid brand names like Speedo, Calvin Klein, Chaps, Nautica, JLO and Ocean Pacific. Any of the actions mentioned above would likely boost the price of this stock significantly.

Currently, these are just words; however, Investors should watch for future Form 4 and 13D filings from Barington as the fund positions themselves to convince management to make these changes happen. Investors should also watch for a response from the company's management and/or any meetings with the Barington Group. Warnaco is definitely a stock worth keeping an eye on as this story unfolds.

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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.

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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...