The first level is Lossware, the second level is Brand ware, and the third level is Powerware. He has set up a series of questions that an investor can ask of each company to see if they should be a profitable investment. He entitles these questions as the Net Profit Retriever. Essentially it boils down to three things. At the end of the book the author offers five screens that will help an investor select internet stocks which should be profitable investments.
Various companies pass one or two phases of the Profit Retriever.
But only two companies pass all three levels. All in all, this is a well written and informative book. It contributes to our knowledge by giving us a system for valuing and evaluating internet companies, something that is missing from most books on the subject. If anyone should understand the Internet and all of its investment angles it should be these individuals who live in Silicon Valley and spend 24 hours a day eating, drinking and sleeping the Internet. In this book they say some very controversial things.