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It's Time to Say 'Yahoo!' Now That Mayer Is Succeeding

Getting back to its cash hoard, which stood at around $6 billion by the end of 2012, the company's board authorized the repurchase of an additional $3.4 billion worth of stock for 2013. So it still could take a whole lot more shares out of circulation and reduce share dilution by a meaningful amount.

Yahoo continues to own 24% of Chinese e-commerce powerhouse Alibaba, which has in the trailing 12 months generated close to $700 million of operating profit. To put that in perspective, Amazon (AMZN) generated $676 million of operating profit in 2012 despite sales that were 12 times larger.

So it's been a good day and a good year for Yahoo! and its CEO. Mayer's decision to give the company's home page a face-lift and dynamically employing new policies to increase productivity look potently proactive. Wall Street is buying it, and the upside for the stock looks promising.

Can you imagine what would happen if Yahoo decided to start paying a dividend? Mayer ought to consider announcing one April 15. Shareholders would be delighted. And, by the way, congratulations on a great first year as CEO!

Disclosure: At the time of publication, the author was not long shares of the companies mentioned in the article.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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