Cheap stocks don’t necessarily constitute bargains and thus good buys, in fact they often aren’t. Besides, the price of a share alone, is not always revealing what you should know about a company you are thinking of investing in. The stock price is a reflection of what investors are willing to pay to buy the stock at any given time, but does not necessarily accurately represent the actual intrinsic value of a stock or its future prospects and growth direction. However, a good investing strategy would be to try to identify stocks that are undervalued, often due to external factors, and invest in those expecting their price to go up in the near or further future.