Microsoft Shares 10% within 52-week Low

Microsoft Corporation (NASDAQ:MSFT) shares closed the day at $25.37, which means they are now just 10.41% away from its 52-week low, is this finally the bottom for MSFT?

Microsoft (MSFT) shares have traded between $22.73 and $31.58 over the past 12 months.  Thanks to the recent decline in Microsoft Corp yet again, they are now trading with a P/E Ratio of 12.2 and EPS of 2.11.  Since April Microsoft shares have pulled back 18.5 and its share price have done a classic sine $26 to $24, then back again, and now back to the $25 level.  The issue with Microsoft is growth, how can the massive $219.5 billion market cap company get any bigger, how much can shareholders expect to gain if billions in revenue only amount to a $1 increase in the stock price?

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Forget what we think, let's take a look at the recent analyst action on MSFT shares:

Notice something, all target price reductions, but they are still well over $30.  Sure Microsoft is losing to Apple Inc. (NASDAQ:AAPL) and Google (NASDAQ:GOOG) in just about everything cool, but the old tech giant still does something well -- generate cash.

Microsoft Corp reported its quarterly earnings last month, posting revenues of $16.04 billion which ahead of Wall Street estimates and up 22% year over year. This still puts it about $300 million ahead of Apple Inc. (NASDAQ:AAPL) and that's a win no matter if you are a left handed Microsoft geek.

Bryan Hinmon, analyst at the Motley Fool Pro said it best today:
Microsoft (MSFT) is just getting too cheap to ignore. The company has grown revenue by 9% and earnings by 13% for each of the past five years and has generated enough free cash flow to make Bill Gates blush. And even though Microsoft is “cool to hate,” it is incredibly shareholder-friendly, having returned $100 billion to shareholders over the past five years via dividends and share repurchases.In terms of profit, Microsoft’s $4.52 billion for the quarter far exceeds Apple’s $3.25 billion, so while Apple may be near even in revenue, Redmond’s still making more money. This can be explained by the fact that a large portion of Microsoft’s business is in software, where profit margins are much higher. 

Review more of the numbers from Microsoft's last earnings call at InformationWeek.com, I'm sure you'll agree, its all good, but what does that say about the stock price?

For once, take a cue from the analysts covering the stock, they think MSFT will hit at least $30 in the next 12 months which works out to an 18% gain from today's closing price.  Son of a gun didaly-on.