Forget the Sirius Minerals share price! I’m buying this FTSE 100 share instead 

Its long-term prospects look good.

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If there’s one share that’s not benefited at all from the election result, it’s polyhalite miner Sirius Minerals (LSE: SXX). Even though North Yorkshire, where the Woodsmith mine is based, has been a Tory stronghold and continues to remain one after the latest election results, it hasn’t been able to get tangible political support so far.

SXX is running short of funds and with the project being an important one for the local economy, it was hoping to get government funding. However, it hasn’t convinced the authorities yet. In fact, in the run-up to the election, Labour had supported the idea that the government should consider SXX’s proposal.

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Contrary to the run-up seen across a number of share prices seen today, this is one share that could actually have benefited if Labour had won 

Benefiting from stability 

I don’t think Sirius Minerals is a share I’m ready to give up on, contrarian as it may sound; however, it’s not my pick for today.

One share that I do like is the property portal Rightmove  (LSE:RMV), which saw a 4.3% rise at the last close. It isn’t the highest rise it has seen in the recent past, nor has the share price reached any new highs. In fact, it isn’t even the best performing FTSE 100 real estate share after the election results were announced. But I like it for the simple reason that the election verdict could lift the uncertainty surrounding real estate, which is the most cyclical of sectors and most susceptible to taking a hit at such times and it stands to gain.  

Rightmove sits at the intersection of real estate and technology, a segment that is poised to grow overtime. Some of the most promising global businesses that have cropped up in the recent past are e-marketplaces, like Amazon and AirBnB, and RMV has pulled this off for the UK property market, creating a portal that lets buyers and sellers transact.  

Healthy performance 

Unlike on the ground real estate developers, it benefits from being relatively insulated from dips in activity and its risk levels are lower. This also shows in its steady increase in both revenue and profits over the years. For the first half of this year, its revenue is up by 10% and profits by 12%. It’s outlook is sunny too – in its earnings release RMV says it has “continued confidence in delivering its expectations for the full year.”        

My only hitch with Rightmove is that it’s expensive with a price to earnings ratio (P/E) of 34 times and a number of investor-worthy FTSE 100 shares are available at lower P/Es than that. I would wait for the price to come off a bit but will actively look for an opportunity to buy it.

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