The main talking point recently has been the float of QR National, the freight-handling division of Queensland Railways. But Elio D'Amato, of Lincoln Stock Doctor, says they're not impressed. They think the float is over-priced and doesn't offer real value. The company's debt levels are already high and expected to balloon further, while projected cashflow and capital expenditure don't marry up. Meanwhile, the stockmarket's experiencing a risk rally, which reflects investor confidence but is making it harder to find stocks that are underpriced and represent good value. That's in contrast to the United States where uncertainty still prevails, though another round of "quantitative easing" - printing more money - is being looked at hopefully. Among Australian stocks, Lincoln favour the telecommunications sector, which hasn't kept pace with the market rally, and in particular TPG Telecom. In other sectors, Wotif.com and Invocare both represent good value.
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