As all shares of public traded companies have a price, we need to check if this price is “good” for the investment. Most people just focus on that if they buy shares in the stock market, but it is not the only thing to think about. It is important to see the price of the stock in relation to the current and future power of the company. Is it an innovative company with lots of R&D (Research and development) or is it a simple one selling mass products for cheap. Low-cost producers are rather safe, but the stock-price should be relatively low, because there is not much to expect from the future other than stability. Very innovative companies on the other side can have a higher price and the capability of future innovations and products should be considered in the calculation. For an overview you might want to check Risk & Chances.
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