
Financial Times values Greenland at $1.1 tn, Buy rating in mock sellside report - TMWNN
https://ftalphaville.ft.com/2019/08/16/1565947959000/Greenland--upgrade-to-BUY/
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TMWNN
The _Financial Times_ values Greenland at $1.1 trillion. While done in a
humorous tone, the mock sellside research report uses an interesting sum-of-
parts valuation model:

* $300-400bn for possible oil reserves.

* $500-700bn for rare earth minerals.

* $200-220bn for potentially developable land.

The report points out that the US has a good track record of accretive
acquisitions, with the Louisiana Purchase, Manhattan island, and Alaska all
producing 7-9% in annual returns. Interest rates are very low, easing
borrowing the money. A risk is other bidders, specifically Canada and China,
making offers, although the newspaper points out that China is busy with Hong
Kong at the moment.

