Ryan Modesto

Market Outlook He thinks today's move up is a relief rally. It is good news that the market has taken a pullback, he feels, thanks to the Coronavirus. Building a base is healthy. Getting defensive and raising cash makes sense right now. Longer term, 12 months out, he thinks this will be far past us. Use the cash to take advantage of buying value. The lower markets go, the higher the probability we get closer to the bottom, so stepping in in increments makes sense to him.

One of his favorites. Volatility is common with this one. They are a vertical market software company, having very specific software for niche customers. This makes it very hard to compete against them. The contracts tend to be higher margin as well. The concern people have is that now they are as big as they are, can they keep the runway going? He thinks so.

Over the long term they will do okay. He is just not a fan of airlines in general. He would wait on this one before getting in. He would be okay with it, but not to his tastes.

Q4 results positive? He really likes this logistics software company. They get large international contracts and they have been successful at growing the opportunity when they do so. It is volatile, but there is good revenue and sales growth. All looks good. The valuation is high, but the growth rate supports it.

A frustrating name. They have a great management team. For a couple of years, he has been waiting for the execution of a big deal that finally came about. The market is selling it down and he is not really sure why. He thinks investors are just selling it off with the uncertainty in the market currently. It trades at 0.7 times book value. He still thinks things are fine.

He likes software and he likes their POS business. They have access capital now by being public, which is helping their business. They are targeting restaurants and retail businesses and it is growing fast and with high margins (70%). They are not profitable yet so you have to be patient.

Holding this will not hurt your portfolio. They have a 4.5% yield. It is getting hurt with the fear of slowdown in China. In the short term, no fireworks.

He would be okay for the longer term as a hold, but it is a little expensive here. Tim Horton's is the largest segment and it is slowing. It will be a wait over the next couple of quarters he thinks.

(A Top Pick Mar 29/19, Up 30%) He still likes the name. They are into civil defense and aviation simulators. And they have good tailwinds behind them still. Pilots and their training are in high demand. Their five year dividend growth rate is about 10%.

(A Top Pick Mar 29/19, Down 28%) Their shares got hurt recently after a poor guidance update. They have been through this before. He thinks they will do fine. He would see this as a long term hold.

(A Top Pick Mar 29/19, Up 1%) News of their CEO leaving has hurt the stock recently. It does not expect any skeletons are in the closet. This aggregator of funeral homes and cemeteries will see slow and steady growth with a decent dividend.

They just reported quarterly earnings a week or so ago and it was disappointing. They are a commercial packaging company with a global reach. They have been around for a long time. They are good at acquiring companies that add value. He would not be too concerned about the price pullback.

He does not like really high yielding companies. Often it is a signal that something is wrong -- it is just too risky. He would avoid it. Yield 13.5%