Google after the bell for 8-24-06: Google's pending excess problem

Google shares closed up today to $373.73, an increase of $0.30 or 0.08% from Wednesday's close. With GOOG remaining steady today, is it losing its shine? I posed that question today, and my opinion is that the company still continues to make inroads into just about every area it can, even though short-term, skittish investors seem to want some kind of whiz-bang product or partnership announcement every week from the search behemoth. Janet Jackson once said what have you done for me lately, and Google continues to do plenty, but the recognition just wavers like a flag in the turbulent wind.

With a huge war chest of nearly $10 billion and with about $1 billion on tap for free cash flow this year, Tom Taulli posted today that Google is about to bump heads with the SEC, as nearly 40% of Google's assets are tied up in its securities.

Google, by regulation, would need to be traded as a mutual fund, something that would send shareholders of record now into a semi-frenzy. Competitors Microsoft and Yahoo! were able to request and receive exemptions from this SEC rule, and my bet is that Google will have the same thing happen. Will Google keep its cash tied up in Internet traffic and web surfer eyeballs? Why not -- it generates great cash influx for the company, as as Tom states, that's a great problem to have.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.