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Hi Dave,

No, I hadn't looked at GameStop. You probably know it was a Stock Advisor pick that was sold several months ago.

The latest ttm FCF numbers won't be available until the company releases the 10-Q (and they didn't mention anything on CFFO or capex in the conference call), so the best we can do is the $447 million you indicated and I get very similar numbers.

The biggest concern seems to be a move toward digital downloading which would make GameStop irrelevant. However, reading through the transcript of the last conference call, they seem to be addressing that, offering items for download via their website and at their stores. They're rolling out Sony downloadable content to all their stores and they're launching a preorder Halo map pack for download, with a GameStop exclusive helmet for Xbox Live players (for the in-game character, the avatar). If they continue going that route and show success, then they could conceivably overcome the worries.

I've also heard that they've moved away from PC games. Do you know if that is true and, if so, why they went that direction?

Might make an interesting shorter term play over the next quarter or two, especially if they can blow out their own raised guidance.

Cheers,
Jim
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