IBM Has Spent $3.6 Billion on Buy Backs This Year. Should Investors Be Happy?

Some investors don't like the notion of companies buying back their own stock, regardless of the circumstances, whereas others love the concept. I've always taken a middle of the road stance on the topic: I think there's a right time, and a wrong time, for businesses with large cash hoards -- like IBM (NYSE: IBM) -- to pare down the number of shares outstanding.

For example, initiating a share repurchase program can be an effective way to send investors a signal that even if a company's stock is under pressure in the near term, management has confidence that it will be able to right the ship.

The question now at IBM is: Is the tech giant's use of ready cash for stock repurchases a sound, long-term move or a strategic mistake?

Source: Fool.com