Fair point but I don’t think that the problem of credit crunch will be restricted to infrastructure companies only. The economic system is too interlinked such that no sector will remain unscathed from all that is happening right now.
All small caps and microcaps have been tarnished badly. Economic situation is also not good. Many mediocre companies will die and the ones that survive will do good for many years. I think innovators façade will survive as most of their revenue comes from good reputed clients who aren’t facing insolvency or have low risk of being insolvent. They also have a good reputation as a result of backing by marquee investors. Given to choose between its competitors and this company, I would back Innovators to survive. I maybe wrong here but who isn’t.
Price influences perception. Investors assume that there is something wrong if the price goes down too much. It is true sometimes but this assumption can be wrong also. I believe price has gone down because of massive panic selloff in the market which has spared no one. I think at this price the company is still a good buy if there isn’t any management risk or insolvency risk as of now.
I see it as an asymmetric opportunity( as many other small and micro caps) which can gain multiple times.
Small caps and microcaps have been tarnished badly. Seems like market has lost faith in them and such lack of faith gives great opportunities to lap them up if one sees from a 5 - 10 year perspective.
Disclosure: Adding slowly this fall