Why investors may want to keep an eye on Idera Pharmaceuticals and Ekso Bionics.
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).
