-- Yahoo's new CEO Marissa Mayer is taking all the right steps. There is some acceleration in revenue, good conversion of revenue to EBITDA, and a nice job in monetizing extraordinary off balance-sheet assets
-- Yahoo still trades at very low valuations and given the competition from Google and Facebook, he will not give a very high multiple. But even with an 8x multiple the stock is worth $25.
-- The good thing about Yahoo is the very stable and marginally growing cash flow
-- Yahoo is a decent call option because if the current strategy does not bring higher growth then the likely strategy will be to merge, and he sees Microsoft as the best option.
Credit and source: www.cnbc.com, CNBC
Here is the video: