Cementing a deal with Sam’s Club after getting dropped by Costco may not have been an even trade, but it created a lot of value in shares of American Express (AXP), said Tony Scherrer, director of research at Smead Capital Management. 'It’s caused the valuation to come down significantly on the stock and for a high quality asset like American Express that’s widely used by millennials and it’s also the number one card-of-choice that’s used by baby boomers and the affluent we think it makes a lot of sense here,' said Scherrer. Shares of American Express haven fallen almost 17% thus far in 2015. The Smead Value fund (SVFAX) is up 20 basis points year-to-date, according to fund-tracker Morningstar, which also awards the fund a full five star rating. Scherrer is also positive on shares of Gilead, up 18% in 2015, saying the biotech giant will do some buybacks and likely make some acquisitions in the wake of its massive sale of $10 billion in debt.
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