MYTH-16. A LOW-PRICED SHARE IS ALWAYS CHEAPER THAN A HIGH-PRICED SHARE
·
Some investors
believe that a low-priced stock is cheaper than the one trading at a higher
price.
·
The former may be
costlier in terms of valuation if its profits are falling and there is poor
revenue visibility.
·
There might be
something wrong with the company, which is why its shares are being battered.
·
Invest only if
the company’s fundamentals are intact.