An inexpensive stock price doesn't tell us any more about a company than a high stock price. After all, a company's market cap is simply the share price times shares outstanding no matter what the price of a stock is.
But in reality, companies try to stay away from having stock prices that are too low. Penny stock territory is a warning sign for investors, and even prices under $20 can be seen as a sign of weakness by investors. But I think there are still buys in the low share-price segment of the market, and Virgin Galactic (NYSE: SPCE), Bloom Energy (NYSE: BE), and SunPower (NASDAQ: SPWR) are the three I am very bullish on long term.
Image source: Virgin Galactic.
Source Fool.com