Paisa wise rupee foolish

Many stocks are trading at a low price but one should be wary of buying them

To catch a falling knife’ is a popular market saying and is thrown about when one wants to buy into a stock that has plummeted. The underlying belief being that it will bottom out and reverse trend soon. In the current scenario, there are a lot of stocks that have lost 30-50% of their market cap and seem attractive when compared to their glory days. The table Bottom-less is representative of the truism that low price does not necessarily equate value.