Just as soon as I posted my thoughts on my Yahoo investment, a very good analyst was just on Bloomberg TV gave a comprehensive analysis of the underlying value of Yahoo and why he views the shares as very attractive NOW. In summary, he believes the e-comerce businesses the company has in the U.S. and in Asia (through their ownership in Yahoo Japan and Alibaba - both of which I just mentioned).
The analyst sees multiple bidders for Yahoo, with Microsoft being the most obvious purchaser (based on the shared search businessess between the two companies as well as the fact Microsoft wants access to Yahoo's Asian presence). I believe the company will see an acquisition proposal from one or several companies in the coming month. Yahoo's stock is currently trading at $15.75/share, and I see the company being bought for $21-$23/share. Even at $21/share, this would represent a return of approximately 33% return (now that would be a great Christmas present!).
