Business conditions will change over time and stock will react to changes in short term, but long term prospect for IBM and in general for IT business is strong. However the problem for IBM long term stockholders is that a significant part of IBM income is used to buy back shares that are constantly being issued to executives. Source of IBM income growth is cost cutting and change in revenue mix. In absence of revenue growth this process can not go on forever.In the interest of stockholders, the income must be directed to shrinking the number of shares without monkey business or for creating new source of revenue. For %30 of income to be used for executive options, this can be only justified in cases that executives have such impact on business that they are creating unique innovative products or services that is rapidly increasing company's market capitalization. (for example aapl, google, Vmware,..) Just milking the existing business can hardly justify such a hefty executive stock option program. IBM stok option is like emerging high
tech company but business operates like a utility company.
If IBM spends $2000 in share purchase at ($200 per share) then total number of outstanding shares should decrease by 10. This is not the case and IBM shares decreases only by 7 shares and 3 shares goes to offset the shares issued to senior IBM executives