Dragged down by the challenging market conditions, many stocks have fallen under $10 lately. CNBC's Cindy Perman suggests that some of these stocks could be become good investments for traders. However, not everything that is cheap could be such a good bargain, Perman reminds us. You must always do your homework on potential investment before buying.

For example, Ford Motor (NYSE: F) fell down to around $6 compared with $38 nine years ago -- is it a good investment? Well, while the automaker revealed its plans to shift production from trucks to cars and give a boost to its turnaround plan, it also warned it won't be profitable until 2010 at the earliest.

Perman quotes several investment specialists on the matter. John Schloegel, vice president of investment strategies at Capital Cities Asset Management says, "An investment in Ford today feels like being in the wrong place at the wrong time." And Greg Womack, president of Womack Investment Advisers, advices to stay away from the sector, which doesn't look promising now, for the next three to five years to find out the "winner."

Another stock to consider is Sprint Nextel Corp. (NYSE: S), which is currently trading around $8. There could be some recovery hopes for the company if we take into account its agreement with Clearwire to develop faster networks. Still, investors should keep in mind that earnings reported for the past year tumbled 80% and are expected to fall even more. Just like Ford, Sprint doesn't look like a bargain, it's simply cheap.

Cit Group Inc. (NYSE: CIT) was a victim of the suprime fallout. The company saw its stock dropping 85% in the past year and is currently trading around $9 a share. However, analysts have predicted a rebound for the company during the next two years. CIT is expected to be "a survivor of the subprime fallout," Michael Cohn, chief investment strategist at Atlantis Asset Management, stated. Perman warns, however, that it's not for the faint of heart.

Then there is Tenet Healthcare (NYSE: THC), which is trading below $6 a share. While the company has a high number of uninsured patients and bad patient debt and is risky, analysts like the company's turnaround plan and growth potential and forecast an earnings increase in the coming years.

A couple more companyies worth taking a look at are Motorola Inc. (NYSE: MOT), whose stock has lost 65% since October 2007 and is trading under $9 a share, and wholesale-power supplier Dynegy Inc. (NYSE: DYN) whose stock dropped 37% in the second half of last year and is trading over $9 a share.

Perman reminds us again to take a look at a company's fundamentals and trends and try to get a good feel for the company's ability to face competitors before investing in any low-priced stock. Also, she writes, that while it can definitely be scary to invest in stocks that have been beaten up recently, there are definitely some good buys out there with some great upside potential.

What low priced stocks have you been watching lately? Let us hear what stocks you are considering!

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.