If I told you about a company whose net income has been dropping for two years, has been unprofitable for three straight quarters, has suspended its dividend, and is selling assets left and right, you'd probably want to know its name so you can avoid it. On the other hand, if I told you about a company that's trading at less than two-thirds of its book value, you'd probably want to know its name, too, so you could see if it's a bargain.
Well, I'm talking about one company, and its name is Green Plains (NASDAQ: GPRE). This Nebraska-based ethanol producer is indeed trading at about two-thirds of its book value, but it has also had all of the other problems I mentioned. Let's look a little closer to see if the company is worth a closer look.
Top ethanol producer Green Plains has underperformed thanks to low ethanol prices. Image source: Getty Images.
Source Fool.com