Ann: Webjet delivers on international WebBeds strategy, page-250

Understanding that the share price is a secondary consideration after the market cap is critical when there are new share allocations. If no new shares are issued then yes, you can look at it in either direction but that's not the case with most stocks. Options are allocated from time to time, directors earn bonuses paid in shares and like with WEB there are capital raises where new shares are issued.

WEB allocated almost twice as many shares in their capital raise as were already issued, it went from 135M to 340M (from memory, not sure if they are the exact numbers) which dilutes the share price, it doesn't alter the value of the company, they just added some cash to their balance sheet, cash which they are now burning through. Once that cash is gone there are more than twice the shares on issue for the same market cap, so the actual price of the shares are reduced, by more than half in this case.

If you are going to invest in the market, it's important that you understand how the number of shares on issue and the dilution when new shares are issued affects the price, but not the value of the company.