From Kiplinger:
When a stock costs less than dinner at a fast-food joint, there’s almost always a reason. The company may be losing money, experimenting with unproven technology or have its future riding on the outcome of a hard-to-predict event. Or it may just be tiny. All that said, dabbling in stocks with single-digit prices can also be like putting a few bucks on red or black at a roulette wheel—you’ve got a roughly 50-50 chance that a small investment could deliver a big reward.