Oct 2020 Portfolio Update

S&P 500 Index Fund 7.7%
Straits Times Index Fund -18.35%
Tracker Fund of Hong Kong -10.23%

My Portfolio +26.26%

The market continues to treat me pretty kindly as we wind down to the final two months of this year.

Notable Transactions:

-Purchase of Emperor Entertainment Hotel due to decreasing prices.

-Funds recycled from 'matured' risk arbitrage position of Xinghua Port Holdings

-Increase in position of OKP Holdings for both dad and my own portfolio

-Substantial increase in position of Perfect Shape Medical for dad and my own portfolio

Some personal opinions:

1) The market continues to appraise medical stocks favorably. All the companies, which enjoyed a meteoric increase in stock price, did report higher revenues (at least) and profits. All figures YTD

Medtecs: 3116% 

Riverstone: 298%

Top Glove: 463%

There are a few possible outcomes for investors:
a) Growth remain on track or stablised, which means that the price will either go sideways or enjoy a more modest climb.

b) Growth, or expectations of growth, disappoints and price falls

The price of a box of mask, during the height of the crisis, cost about 25 to as much as 50. Today, the same mask could be had for $8. One could realistically get only 3 mask for perhaps $10 from some really unscrupulous retails, and one can have a box of 50 for the same price today. 

The prices of these stocks mirrored the prices of mask: when profits escalates, so does competition. There are only 4 ways to increase profits:
1) Acquire companies (inorganic growth)
2) Increase prices/unit
3) Reduce COGS
4) New market/products

As competition increases due to dreamy profits, (1) is likely to be an expensive venture. (2) and (4) are unlikely due to the nature of competition, and it takes seriously capable management to do (3).

I am less than sanguine about the prospects of these stocks.