IBM (IBM) excited the markets by announcing a $15 Billion share buy back. Trading near its 52 week high the timing seems right to drive the valuation higher. (Read executive stock option) As we all get excited about what is most likely a fundamentally good story lets ask a few questions.The $15 Billion is somewhat in excess of one years annual profits. Although the dividend has been increasing, it currently trades around 1.39% dividend yield. Income investors are probably not rushing to tie this one up. If you believe share prices go up because more people want to buy than sell[...]
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[Source: The Money Blogs]
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