1 FTSE 100 stock bucking the market meltdown. Would I buy it?

This FTSE 100 stock has seen good growth in 2021 already, and unlike most of other index constituents, is rising even now.  

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

It might be bad days for most of FTSE 100 stocks as we battle the new coronavirus variant. But some stocks have managed to buck the trend. Like Molten Ventures (LSE: GROW), the venture capital fund that invests in European technology startups. It might be better known as Draper Esprit, its name till very recently. 

Molten Ventures reports strong results

The stock rose by almost 5% yesterday from the day before. And it is up by another 1.3% in today’s trading as well. This increase follows the release of its interim results for the six months ending 30 September 2021 yesterday. The company showed a smart increase in its gross portfolio value from the comparable period last year. 

It has also seen a rise in its net asset value since then. Importantly, the company is in the right sector at the right time. As it notes in its results release, the pandemic has accelerated the shift towards more online activity.

Investors like the FTSE 100 stock

It is little wonder then that Molten Ventures has not just seen good growth, but has also found favour among investors. In the past year, the stock has risen by almost 40%. It has seen almost runaway growth since the stock market crash of March 2020. By October last year, it was already back to its pre-pandemic highs. And by early September this year, it was at almost double its pre-pandemic levels. It has fallen since, but still remains quite elevated compared to where it was before the pandemic. 

As a result, it is a bit expensive if I compare its net asset value per share to its share price. But I reckon that is only because the outlook for the stock is strong. The company says in its latest results that “…. portfolio growth is already well ahead of our stated financial objective of 15% gross portfolio fair value growth for this financial year, and our portfolio continues to perform strongly”.  

Would I buy it now?

With the omicron coronavirus variant wreaking havoc at the stock markets, I think investor demand for its stock will only grow stronger now. And I think that explains why it is still robust even while the rest of the market falls. 

However, like with all my investments, I find it instructive to remember that the situation might change anytime. If the virus comes under control and the FTSE 100 index rallies again, the Molten Ventures’ stock could fall. After all, November has not been a good month for the stock until yesterday, even though the markets were strong for most of it. I do not think this is a coincidence but a reflection of the fact that it looks like a good stock to buy when our technology dependence looks like it will increase. 

On the whole, I like this FTSE 100 stock. But I do believe that it has run up quite a bit already. I would buy it on a dip. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Jumbo jet preparing to take off on a runway at sunset
Investing Articles

When will the Rolls-Royce share price recover?

The Rolls-Royce share price may be down, but cash flows are surging! Zaven Boyrazian explores how long it could be…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

1 dirt-cheap FTSE 100 stock I think could TRIPLE my money!

Demand for lithium is forecast to surge by 42 times, enabling this FTSE 100 stock to potentially supercharge its profits…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Should I invest in the FTSE 100 – or try to beat it?

Our writer has the option of investing in a FTSE 100 tracker fund. So why does he choose to buy…

Read more »

Young black woman walking in Central London for shopping
Investing Articles

£1,500 to invest in a Stocks and Shares ISA? Here’s how I’d do it

Our writer has been investing in his Stocks and Shares ISA. Here he details how he could put £1,500 in…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

2 top FTSE 100 shares I’d buy before the market rebounds!

Christopher Ruane identifies a pair of FTSE 100 shares that have both tumbled in the past year and that he…

Read more »

Business development to success and FTSE 100 250 350 growth concept.
Investing Articles

Here’s why the next bull market may have already begun

The UK stock market has taken the Bank of England's interest rate hike in its stride and green shoots suggest…

Read more »

Gold medal
Investing Articles

No contest! Here’s my stock of the week

An update from this company offered some relief from the economic gloom. It's this Fool's stock of the week.

Read more »

Cogs turning against each other
Investing Articles

Scottish Mortgage shares are back on the rise: is now the time to jump onboard?

Scottish Mortgage shares have risen over 25% in the past 30 days. This Fool takes a look at why and…

Read more »