Although market cap is a more important metric to consider when determining the future value of a company's share price, it's not uncommon for investors to think that a lower stock price represents value or the opportunity for gains. Sometimes that's correct, but not often.
In other words, there's usually a good reason that a stock is valued below $5 per share, although that doesn't mean all companies with low share prices will be stuck there forever. While the risks may be higher for these companies, I think investors should at least keep an eye on the developments for biopharma Idera Pharmaceuticals (NASDAQ: IDRA), precious metals miner Yamana Gold (NYSE: AUY), and exoskeleton suit pioneer Ekso Bionics (NASDAQ: EKSO).
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Source: Fool.com