low priced stocks

Investors have a weakness for low-priced stocks. The logic is pretty easy to see: If you buy shares at $1.00, and the stock takes off, you can pocket a bundle.

But if you're wrong, this line of reasoning goes, you only lose a buck.

Unfortunately, when it comes to low-priced stocks, the situation isn't always that simple: That $1.00-a-share stock isn't always "cheap" - while that $100-a-share stock can end up being the real bargain.