Investing Mantra's - Share: Cheap stocks are not necessarily worth buying


”Cheap” shares/stocks are not necessarily worth buying

* Price of a share /stock can be low (and therefore appear cheap) because in reality the firms is not doing well; the hype about the company / or sector and comparison with prices of good companies may induce you.

* Worse, the price can become low because the face value has been split (over 600 companies have split their shares); rationale given is to make shares affordable to small

investors; not valid as one can buy even one share; real purpose is to make shares appear “cheap”


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