DSL Dreamin' - TheStreet

Oh man, DSL overload! I am still trying to compile something worth investing in off of this

survey. And I am trying to get my arms around what seems to be a nationwide problem: the quick and easy access of non-slow equipment that allows constant access to the Net.

To give you a heads-up about what I am doing, I'm poring over all of your email and watching the results be tallied on the poll. I am then forwarding them to Matt "DSL-Cable Modem -- Makes

No

Difference to Me" Jacobs and we are trying to come up with some core theses.

Two early analyses, both of which I hesitate to point out, but the work is pretty clear: The resurgence of DSL is good for

Turnstone

(TSTN)

and

Copper Mountain

(CMTN)

, both real companies with

multiples

.

But they are thin and we own small positions in both, waiting for them to come down. I will go into great detail about why they could be the short-term winners, but I didn't want to sandbag you: These are the types of companies that I am normally shying away from because the environment has gotten so hard. If you pile into them, or take them up big on the strength of this note, I will sell them because they don't deserve that kind of ramp.

I am going to repeat that note: If you think these stocks are going to go straight up because Jim Cramer and Matt Jacobs said they are OK then we have learned

nothing

since the rise and fall of overvalued tech.

It is just that these are the kinds of companies we keep looking at and we keep place-holding positions on to maintain them. We are also struck by a love for

Covad

(COVD)

,

Northpoint

(NPNT)

and

Rhythms

(RTHM)

, three companies that have had almost universal acclaim from you. Get this, though: They don't seem to be blowing away the numbers, as they are stifled between the regional Bells and the regulators.

These three are all bumping along their 52-week lows!

But that's not enough to buy anything.

Bottom line: This issue is very, very important to all of you and merits a lot of thinking about how to profit from it. Maybe we can't profit from it. Maybe it is too difficult. That's OK. A lot of investment theses are too difficult.

Any issue, however, that you have this much passion over,

I

have this much passion over, so we have more work to do to explain how we all can profit.

I feel guilty even revealing my disclosure at the end of this because it is not meant as an endorsement, but we own them so that's what I will do.

I do think that if they were to come down, though, I would buy them: From what I can see from these polls and from the work that Jacobs has done so far, they are at the sweet spot.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Copper Mountain and Turnstone. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.