Eternal Image Inc (fka ETNLQ)

[al44]

Trunk- what you're referring to is market capitalization and yes it is an important statistic looked at by investors. Your scenario is correct at the .004 level and .008 level with half the OS being the same market cap. Revenues and earnings are the 2 numbers that drive market cap. There are many formulas people use to try to predict market caps and invest accordingly. It is true that outstanding shares X price per share determines market capitalization, however at some point in time, generally during a quick run up in share price, people start looking at the market cap instead of the share price and the outstanding shares and say "is this company really worth that much?" You see it a lot in penny stocks, a quick run up then the "gap" that must be filled. Most times that "gap" is created by investors wondering whether XXXX company with $45,000 in yearly revenues and a loss of 67¢ per share is worth a $125 million market cap. I hope that helps a little. Your thinking is not out of line. GL2U

...........al