Nukkleus Inc (NUKK) is a financial company looking to bring the foundation of financial technology into the digital asset space. They cater to both the retail market and also institutional investors. NUKK has had some large price fluctuations. This year has seen the price has run from $0.09 to above $2 twice. So with the price now down at $0.25, is there a good reward?
NUKK’s portfolio consists of three brands: Match Financial, DigitalRFQ and FXDD. Match Financial brings together a team with a track record in innovative analysis, scoping, development, delivery & RFP success. The services include platforms that have been designed and built to take advantage of the cloud to deploy and scale quickly and cost-effectively. DRFQ is Europe’s leading digital asset execution service providing global counterparts with unique access to global liquidity and a suite of institutional products and services. It offers leading over-the-counter (OTC) trading services with access to large liquidity pools, trading for single or multiple currencies. Finally, FXDD is a provider of foreign exchange trading for retail and institutional clients. They provide access to the spot foreign exchange market through proprietary and third-party trading software.
The CEO, Emil Assentato, has over 30 years of Wall Street leadership in a senior role. He spent many of his years as CEO of Tradition North America, one of the leading inter-dealer brokers in the world, and a subsidiary of Compagnie Financiere Tradition, a leading global brand in inter-dealer broking listed on the Swiss Stock Exchange.
The COO, Jamie Khurshid, has a tremendous background of experience to bring to the team. During his time at Goldman Sachs, Credit Suisse and Royal Bank of Scotland he co-founded IHS Markit Boat and London Stock Exchange Turquoise MTF. He is well recognised for successfully delivering the longest-running European regulatory vehicle and defining the first voluntary transparency regime for the global bullion market on behalf of the London Bullion Market Association.
For both of the years ended September 30, 2021 and 2020, NUKK had revenue of $19.3M. The company has assets totalling $16.7M, up from $3.8M the previous year. Total liabilities have decreased by $500k from the previous year, now at $4.6M.
Nukkleaus Inc acquired a stake in the new BTC ETF Issuer, Jacobi Asset Management. The company bought 5%, worth an eight-figure sum. Jacobi brings together decades of expertise from Banking, Regulation, and Fintech to shape the future of digital asset management by designing, issuing and managing institutional crypto products and funds connected to digital assets. This news adds to the prospects Nukk have to continue developing as a company.
NUKK really took off in September and has become a popular OTC. Where do we think the price will go? Currently, it is within a channel. Support is at $0.20 and resistance is $0.40. A break above $0.40 could see a move towards the 0.618 fib retracement. We think the price can break above this to the 0.5 mark, $1.17.
We think the recently released earnings have shown positive signs for Nukkleus going froward. They are seeking great business opportunities and partnerships and are expanding their foundation within the digital asset space. Also, the technical setup of the stock is also a positive sign for a move up. The momentum looks likely to build and the stock can reclaim $1 in the near future. The risk is low with the safety of $0.20 not too far below.