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Immunotec Is Not Immune To Taxes

Immunotec (OTC:IMMTF) is a micro-cap network sales company headquartered outside of Montreal Canada. Since going public on the Toronto Stock Exchange (TSX) in 2007, the stock has gone nowhere. Sales, however, have grown significantly since the IPO, having reached an all-time high of $80.8 million ((CAD)) in 2014. Despite the $80.8 million ((CAD)) in revenue (a 48% increase yoy), the company reported a surprise loss of $2.7 million ((CAD)). The loss was due to an unexpected tax charge related to the Mexican business. Further examination of the issues facing Immunotec shows a company facing material losses in the future.

Network selling, or multi-level marketing, businesses are inherently volatile entities, which is why most are privately held. Those that are publicly held, and divulge sales in geographic regions, often show what industry insiders refer to as "pop and drop." Pop and drop is the explosion of growth experienced when a MLM… Read More …