BGC's Gillis: Yahoo! Inc. Turnaround 'Best Done Out Of Public Eye'

Yahoo! Inc. YHOO is a "turnaround play that's shown very little turnaround," BGC Partners analyst Colin Gillis said on CNBC Tuesday.

The company is "best served being sold and turned around privately," he added.

Gillis currently holds a Buy rating on Yahoo. He explained that any bull in the stock sees it as a "financial engineering play...you have to have a view that this management team will take the right steps." If Yahoo can get a bid, it should sell itself, he stated.

"So much of the assets embedded in what we call 'YHOO' is the Alibaba piece, the Yahoo Japan piece and their cash piece," Gillis explained. "It's a turnaround best done out of the public eye...to report every 90 days, that may not be the path to take."

A recent Bloomberg report said Yahoo CEO Marissa Mayer is expected to unveil plans for a new turnaround plan on Tuesday, one that will potentially include job cuts. Sources told the outlet last month the company is also considering a full sale of its core business.

“At this point everyone’s tired and just wants the board and management to agree and entertain some offers for the core business to be sold,” B. Riley's Sameet Sinha told Bloomberg.

Only time will tell what Yahoo will do, but bullish investors should keep a close eye on Gillis moving forward.