Discovering investment art in LA

Sponsored by Red Eight Gallery One of our hottest new discoveries for 2020 is the young rising star Cayla Birk who recently celebrated her first solo show in Los Angeles. Born in Florida to a single mother, Birk credits her love of travel and her eclectic childhood to her success as an artist and her diverse body of work. Birk’s practice draws on a wide range of influences including writers, thinkers, and musicians such as Jack Kerouac, Ella Fitzgerald, and Chuck Palahniuk. Her signature style mixes traditional media like acrylic paints with more unusual materials to create a striking juxtaposition of bold gestures and provocative lettering. Birk’s quick mind and versatility shine through in her work with connections made from one project to another through recurring themes and concerns rather than aesthetic continuity. “My artwork re-conceptualizes social and cultural subject matters”, explains Birk in her artist’s statement. “In my work, I allude to popular iconography, musical lyricism, and current verbal slang that pervade societal culture. Having engaged subjects as diverse as enlightened secret orders, hip-hop music and contemporary design, my work reproduces familiar visual signs, arranging them into new conceptually layered pieces.” Birk’s “Periodic Table of Relevance” project is a prime example of how she revels in taking common, everyday symbols and breathing new meaning into their familiar forms. This series of canvases portrays the elements of the periodic table with a provocative twist; each letter abbreviation is given a false name and an alphanumeric cypher hidden in the atomic weight at the bottom of the canvas. For example, “Br” becomes “brunch” and “V” is named “versace”. The viewer is also invited to interact with each piece via a conical flask which reveals the secret meaning of each atomic weight. Another related project is “Birktone” which plays on the familiar Pantone colour swatches. Each colour is linked to pop icon, famous figure, or concept such as “The Grass On The Other Side” for a bright shade of green. As with “Periodic Table of Relevance” the project allows the viewer to see something familiar in a new light and challenge their own preconceptions of the world around them. Following her first solo show in Los Angeles last year, Cayla Birk’s artworks have received a significant uptick in interest from collectors around the globe. This is the ideal moment to invest in a rising star of the international gallery circuit while prices remain accessible.

AstraZeneca give double update on Monday including Brilinta outcome

1
AstraZeneca plc (LON:AZN) have told the market they have sold a range of hypertension drugs, and have updated shareholders about the outcome of two drug trials. The FTSE 100 listed pharmaceutical giant today updated shareholders by saying it has sold the commercial rights to its Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic to Basildon-based Atnahs Pharma for $350 million upfront. Astra added that they may also get a further $40 million depending on sales between 2020 and 2022. Notably, the sale excludes provisions in the USA and India, which had been sold prior to the announcement this morning. “These are important established medicines, and the divestment to Atnahs ensures they will continue to be available to patients. This transaction supports our strategy to realise value from our portfolio of non-core mature brands, enabling further investment in new medicines,” said Ruud Dobber, the executive vice-president of BioPharmaceuticals at Astra.

Astra’s Drug trial outcomes

AstraZeneca also updated the market about the outcomes of drug trials for two new medications. The pharmaceutical giant said that the Brilinta medication met its primary endpoint in a third phase trial, which showed positive conclusions including the reduction in the risk of death in strokes compared to conventional painkillers. Enhertu, a gastric cancer treatment, also met its primary endpoint, in a phase II trial. Astra said the drug achieved a “statistically significant and clinically meaningful improvement” in the response and survival rate of patients with unresectable or metastatic gastric of gastroesophageal cancer. “Results of the phase three THALES trial showed Brilinta, in combination with aspirin, improved outcomes in patients who had experienced a minor acute ischaemic stroke or high-risk transient ischaemic attack. We look forward to sharing the detailed results with health authorities,” said Mene Pangelos, the executive president for BioPharmaceuticals R&D at Astra. “Gastric cancer is usually diagnosed in the advanced stage and patients face markedly high mortality rates, making the need for new therapies especially urgent,” said Jose Baselga, executive vice-president of Oncology R&D. “Given the previous results seen in our HER2-positive development programme and now in HER2-positive metastatic gastric cancer, we believe this antibody drug conjugate has the potential to redefine the treatment of patients with HER2-expressing cancers.”

Astra end trial for Epanova

A fortnight ago, Astra said that they would be ending the trial for their Epanova drug. The firm added that this could lead to a $100 million impairment, something which will worry shareholders. Astra said that this decision was based on a recommendation by an independent monitoring g committee, which said that Epanova is “unlikely to demonstrate a benefit to patients” with mixed dyslipidaemia who are at increased risk of cardiovascular disease. Mene Pangalos, Astra’s executive vice president of BioPharmaceuticals R&D, said: “It was important to assess the potential benefit of Epanova in mixed dyslipidaemia. We are disappointed by these results, but we remain committed to addressing the needs of patients in the cardiovascular space where we have an extensive pipeline.” Shares in AstraZeneca trade at 7,505p (-2.01%). 27/1/20 10:35BST.

Potential buyers don’t see attractions of accesso Technology

Digital ticketing technology provider accesso Technology (LON: ACSO) has ended its formal sale process and says that its 2019 figures will be at the lower end of guidance.
The formal sale process lasted six months and it cannot have helped the progress of the business. The parties interested in buying accesso, whose clients are attractions and theme parks, such as Legoland Windsor, were not prepared to pay enough for it.
Considering the share price has fallen by around three-quarters over the past year that is not a good sign. The share price has fallen by two-thirds since the formal sale proc...

ASOS bounces back but still much to prove

Online fashion retailer ASOS (LON:ASC) had a tough 2018-19 and it was overtaken in value and growth terms by rival boohoo (LON: BOO) but the latest trading statement was more optimistic, although the comparisons were week.
Overall retail sales were 20% ahead in the four months to December 2019 with coming from all regions. This was much better than even the optimistic analysts expected.
The UK had the slowest growth, but it was still 18%. Total group revenues improved from £917.9m to £1.11bn.
The good news was that the distribution centres appeared to cope with the Christmas demand. This helpe...

Sosandar doubles customer base

There seems to be a large difference between online fashion retailers that are doing well, such as boohoo (LON: BOO), and those that are showing signs of a recovery, such as ASOS (LON:ASC), or seem to go from bad to worse, such as Quiz (LON: QUIZ). One online fashion retailer that is benefiting from its focused approach is Sosandar (LON: SOS).
Sosandar has grown consistently. The latest trading statement from the retailer focused on woman who have grown out of fast fashion brands and have more disposable income has led to upgrades.
Christmas
Third quarter revenues were 136% ahead year-on-year...

Mears refocuses on housing maintenance

Mears (LON:MER) was one of the stars of AIM and the share price went from a placing price of 10p to more than 500p in less than two decades. The social housing building maintenance services provider moved to the Main Market during that period, but the share price has been a laggard in the past few years and by the middle of 2019 it had more than halved since the beginning of 2017.
There has been a recovery since then, but the rating is modest given the prospects after Mears exits the operations that have been dragging it back.
Home care
The core operations of Mears have continued to perform we...

Citi sets an ambitious tone for 2020 with $150 million Impact Investing fund

On January 17th, New York-based global bank Citi (NYSE:C) announced the launch of the $150 million Citi Impact Fund, an investment drive aimed at “double bottom line” US-based private sector companies which generate financial profit and have a positive impact on society. CEO Michael Corbat commented on the launch, “It takes companies of all sizes to address the challenges our society faces today. While Citi’s global footprint and scale allow us to use our balance sheet to play an important role, smaller, newer, ‘double bottom line’ companies play an equally important role in driving change.” Citi says that the Impact Fund is designed to invest in businesses which offer innovative solutions to four main societal challenges:
  • Workforce Development – solutions that train and connect people to careers.
  • Financial Capability – solutions that increase access to the financial system.
  • Physical & Social Infrastructure – solutions that improve an individual’s way of life through housing, healthcare and transportation.
  • Sustainability – solutions that address issues related to energy, water and sustainable production.
On top of this, a portion of the fund has been set aside specifically for “earlier stage seed investments”, with Citi explaining that this funding will be allocated to businesses led or owned by women and minorities. Ed Skyler, executive vice president of Global Public Affairs at Citi, elaborated on the bank’s new venture: “The gender and ethnic gap in the startup world is very real, with reports showing a small fraction of venture capital funding being allocated to women and minority owned startups, Our intention is to not only help these businesses scale and thrive but to also shine a light on the investment opportunities among this pool of often overlooked, high potential entrepreneurs.” With individual investments tipped at rates of up to $10 million paid entirely out of its own capital, Citi Impact Fund is the largest of its kind. Citi notes that eligible companies will be expected to, “have demonstrated proof of concept, built an existing customer base, secured prior rounds of funding and exhibited the potential for scale in multiple markets”. Credit: Written by Freelance Writer, Bronte R. Carvalho

Magway surpasses Crowdcube funding target for their sustainable transportation technology

Magway, a deep-technology company providing sustainable transportation solutions, has reached overfunding in its crowdfunding campaign on Crowdcube. The UK-based company is developing an ecommmerce distribution network which is aiming to reduce green house gas emissions. The UK is the only country that have legally committed to eradicating green house gas emission by 2050 and while renewable energy can control carbon emissions in electricity generation, a large proportion of the UK’s green house gas emissions come from vehicles.

Impact Investing

Magway have set about creating a solution that involves vehicles running on predominantly underground tracks that transport goods from warehouses to distribution points closer to their end destination. With the adoption of ecommerce increasing at astronomical rates, Mayway’s technology will reduce congestion on the roads caused by delivering goods ordered online. This in turn will provide environmental benefits through the reduction of green house gas emissions. As their is a measurable positive impact from Magway’s business model in the form of the reduction of green house gas emissions, it can be classed as an impact investment which goes well beyond those investments that simply have ESG elements attached to them.

Crowdcube crowdfunding round

Magway had an initial funding target of £750,000 in exchange for 4.7% of the company which would have given Magway a pre-money valuation of £22.5m. Their innovative technology and the positive impact Magway provided to the environment has previously won them funding from Innovate UK in the way of a grant. This grant funding along with prior seed funding amounts to £1m in funding already raised before the Crowdcube round was launched. Mayway have received EIS advanced assurance from HMRC meaning eligible investors can receive 30% income tax relief and will receive further benefits on disposal if the shares are held for three years. Magway’s round on Crowdcube is set to finish 31st January 2020.  

Why the Singapore model could teach Brexit Britain a thing or two

We’ve heard every iteration of a ‘country’ plus or minus, model or deal, and I can’t help but feel like each vision for post Brexit life has sounded like a half-baked Frankenstein job. Sure, UK governments can and should learn some lessons from policy success stories overseas, and there are plenty of them. Finland has its employment and housing scheme to ‘end homelessness’, New Zealand has its well-being budget, Norway has its inclusive economy and Costa Rica has its 100% renewable energy reliance. The list goes on, but the model that frequently captures the imagination of British – especially Conservative – politicians, is the Singapore model. This news will be little surprise to most. The party focused on GDP growth and productivity maximization, likes a country which burns a relentless work ethic into its youth and has gone from economic zero to hero within a matter of decades. The response to the likes of Sajid Javid, Michael Gove and Jeremy Hunt applauding Singapore’s efforts has been anything but entirely positive, though. Speaking in response to the praise delivered by Jeremy Hunt, Guardian Diplomatic Editor Patrick Wintour said, “Quite how Singapore, an authoritarian state capitalist economy akin to China, has become the pre-eminent Tory model for the UK post-Brexit, as opposed to other more democratic economies, is puzzling.” “Brexit critics often claim the Tory party vision is for a deregulated Singapore-on-Thames, and here is a senior cabinet minister only weeks before the key Brexit vote travelling 6,700 miles to confirm this to be the case.” “For EU negotiators, anxious that a bargain-basement Britain does not have privileged access to its single market, the warning could not be clearer.” “It is also not clear if Singapore’s transformation into an export-orientated manufacturing base for international capital is relevant to the modern UK. Singapore grew at a time when globalisation allowed multinational corporations to take advantage of different labour and production costs in manufacturing. There is little chance, for instance, of the UK becoming a major exporter of electronic goods based on low wages.” These are all damning contradictions: an authoritarian government, a kind of market liberalism that would exclude us from the single market and wages too low to be acceptable to most UK citizens. Not to mention the fact that most of Singapore’s housing is nationally owned, while it provides neither a national health service nor state pensions.

So, what can we learn?

Well, from the approach of negative principles (or put simply, what we shouldn’t do), we can ask ourselves about why we detest some of the components of the Singapore system. We should imagine what we’d miss most if such a system were imposed on us – free participation, healthcare which is free at the point of use, and decent wages and workers’ rights, among other things. From a positive approach, we should certainly aspire to adopt certain principles, if not practices. For me, the successes of their system draw primarily from their attitude towards education. Singapore celebrates its people as its primary commodity, and the fact that they’ve been raised with a first class education and strong work ethic makes them an extremely skilled and productive workforce. What I wouldn’t want the UK to emulate is Singapore’s dismissal of creative and critical thought faculties, which is likely done to optimise vocational skills. What I do agree with is an educational ethos which doesn’t just equip citizens with basic necessary skills, but prepares them to be an active and meaningful part of national productivity. The fact that Singapore has an economy made up 22.0% of manufacturing, 17.6% wholesale and retail, 14.9% business services, 13% financial services (etc) is also worth observing. To many, the very activity of measuring the UK alongside Singapore is contrived, with Singapore being more comparable to London than an entire country. However, we should take on board two things if nothing more. First, the intuitive point that it isn’t prudent to have an economy so overly biased towards particular sectors. Second, the productive capacity of a country, and perhaps the quality of life of its citizens, is only maximized if we have an economy which attempts to utilise the productive potential of as many people as possible. Granted, the UK faces the challenge of trying to revive once-lively hubs of productivity, as well as regions which are far away from urban metropolises. What we should remember, though, is that even if some traditional industries have died (or more accurately, been outsourced overseas), we still have concentrations of potential workers who haven’t been given the chance to fulfil their potential. It isn’t my intention to completely disregard existing efforts to inspire business in places such as the ‘Northern Powerhouse’, but the London bias is still plain to see. This isn’t to say the bias involves continuous and ongoing policies in favour of London’s primacy, but rather not enough is being done to reverse the structures that made it the only global hub in the UK. Two way we could look to kill two birds with one stone in the UK are via:
  1. Implementing a framework of first-mover incentives. This may involve lower taxes, infrastructural spending or some form of subsidy. The bottom line is that any business has strength (and a country creates a specialisation) in numbers and in density. If we want to inspire other sectors to set up base in the UK, and specifically not in London, we have to make it as easy as possible for them to do so.
  2. We should consider a return to manufacturing. I’d ask readers to resist the temptation to eye-roll and consider for a moment, the possibility of the UK being at the forefront of both developing and using automated hardware and software. It is self-evident to anyone in touch with the times, that a major power play that is occurring (and will continue to occur) is the race to develop and patent automated and AI systems. If we cater our education system to help the generation understand and design the machines of the future, we could aspire to be a hub of automated manufactured goods and technology patents.
Apart from the two principles I’ve laid out, the efforts of our government should be directed away from making the UK more like Singapore. First, we’d benefit from a more substantive effort to build council houses, especially within a right-to-buy scheme which focuses on first-time buyers and consults Local Housing Authorities. Increased access to the property market would not only give people an incentive to work towards a goal (and encourage them to work to pay off mortgages) but gives them an asset which provides stability and an incentive to be enterprising and work to advance their position. Secondly, it’d be greatly beneficial to the collective national narrative to consider greater scrutiny of unfair electoral practices, greater parity in education and where possible, enforcement of tax collection on the highest earners and companies not paying taxes on their UK operations. These goals are less straightforward than my first suggestion, but important in achieving the ends of creating a sense of fairness, reciprocity and collective participation, which are necessary preconditions for bringing about a greater sense of belonging and solidarity within a national community.

Hotel Chocolat growth rate slows

At times it seemed that chocolate maker and retailer Hotel Chocolat (LON:HOTC) could do no wrong. That has changed as slowing growth in the second quarter has led to a downgrade, albeit small.
Given the high rating enjoyed by Hotel Chocolat it is impressive that the share price has held up so well, falling 12.5p to 415p. There is normally a disproportionate reaction to a downgrade. However, it is in the minority of AIM company share prices that are lower now than at the time of the General Election.
Peel Hunt has trimmed its pre-tax profit forecast by £500,000 to £14.5m. The shares are still t...