Biofuel Energy Corp (NASDAQ:BIOF)

CAPS Rating: 1 out of 5

The Company is considered development stage as its only asset is its investment in Energy LLC. The Company's plan is to become an ethanol producer in the United States.

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Member Avatar TMFDeej (99.29) Submitted: 4/24/2014 4:39:12 PM : Outperform Start Price: $8.67 BIOF Score: -18.66

OK, I'll bite. I just read a compelling investment case for BIOF even though it has more than doubled since the start of the year.

To make a long story short, the super investor David Einhorn of Greenlight Capital made a bad investment in this biofuel company. A month or two ago he made a proposal to them to purchase a luxury home builder and financier that he co-owns with Jim Brickman in exchange for 49.9% of the company's stock for him and 8.4% for Brickman and that he would give them a $150 million loan at 10%.

So is this a good deal for BIOF shareholders? If the company's board accepts it, and that's a big IF, Farukh Farooqi of a successful special situation-esque fund called HBC Marquis Partners thinks so. He recently presented the following information on the company...

- BIOF has $174/share in net cash
- And more attractively, $178 million or $29/share of net operating loss carry forwards
- "Assuming an unlevered return of 15% - 20%, a transformed Biofuel could generate earnings per share of $1.50 - $2.50."
- Applying the current median earnings multiple of other public home bulders to that (16) would result in a stock price of $24 - $40 per share.

It seems like a lot could go wrong with this deal, but if it does go through and the home builder is managed decently even at a multiple that's half that of other companies in the sector this stock would double. Of course, it also could be worth nothing ;). Anyhow, I'm taking a flier on this in CAPS. If anything, it will be interesting to follow.

Jason

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Member Avatar modestus1 (< 20) Submitted: 4/17/2014 8:20:25 PM : Outperform Start Price: $7.70 BIOF Score: -8.28

EV/EBITDA < 1

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Member Avatar NYSEDAYTRADERS (< 20) Submitted: 3/1/2014 11:52:55 AM : Underperform Start Price: $2.90 BIOF Score: -150.65

BIOF was forced to sell its two ethanol plants to GPRE, Creditors wanted out and to get as much money back as possible. Also BIOF is still in the hole. It is unclear how sustainable their business will be.

PEIX however is in the polar opposite position. They have bought back the plants they lost years ago (bankruptcy).

GPRE is also in a favorable position.

Bottom line, Any ethanol stock is better than BIOF.

I would recommend a short if you can stomach the general risks of shorting.

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Member Avatar bIlluminati (30.49) Submitted: 1/2/2014 10:38:48 AM : Underperform Start Price: $1.72 BIOF Score: -326.05

Unprofitable. Likely to remain that way. Subsidies may be cut.

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Member Avatar stockmktdouble (26.34) Submitted: 4/19/2013 12:37:09 AM : Underperform Start Price: $3.90 BIOF Score: -64.97

going bankrupt

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Member Avatar mkocolos (< 20) Submitted: 2/17/2013 9:34:59 PM : Underperform Start Price: $7.10 BIOF Score: +23.58

Fundamentals of corn ethanol production are still not favorable. Corn futures prices remain over $7/bushel, making profits difficult even with recent uptick in ethanol futures prices.

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Member Avatar DeeMichael (< 20) Submitted: 1/5/2013 11:37:13 AM : Outperform Start Price: $4.60 BIOF Score: +27.64

As America looks for alternative clean energy sources, I think investor interest will increase for BIOF. Already up over 600% since 2009.

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Member Avatar foralia1 (< 20) Submitted: 10/27/2012 4:12:25 AM : Outperform Start Price: $6.36 BIOF Score: -21.02

This stock did quite well last year from Sep to Dec.

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Member Avatar SnarkyApple (50.15) Submitted: 9/13/2012 3:58:05 PM : Underperform Start Price: $6.36 BIOF Score: +16.44

Looks like market manipulation.

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Member Avatar dlimvestments (< 20) Submitted: 4/10/2012 11:36:55 PM : Outperform Start Price: $12.00 BIOF Score: -80.46


the demand for ethanol is increasing

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Member Avatar stockmarketdoubl (< 20) Submitted: 2/1/2012 12:55:22 PM : Outperform Start Price: $12.94 BIOF Score: -89.66

BIOF a good trading stock right now between .61 and .68
http://stockmarketdouble.blogspot.com/

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Member Avatar sami2002 (< 20) Submitted: 1/25/2012 9:53:48 AM : Outperform Start Price: $13.00 BIOF Score: -92.14

Will definitely hit $2-$2.15 by the last qtr of 2012.

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Member Avatar BACnumber1 (< 20) Submitted: 4/27/2011 4:57:14 AM : Outperform Start Price: $13.60 BIOF Score: -94.94

I don't like ethanol companies, but at BIOF's price, I like it somewhat. I think it could go up 25% by mid 2012.

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Member Avatar cheme1910 (70.25) Submitted: 3/28/2011 7:10:07 PM : Outperform Start Price: $16.20 BIOF Score: -103.53

Biofuel Energy owns and operates two large corn dry grind ethanol plants in the Midwest, one in Nebraska and one in Minnesota. BIOF is a company that went through their construction and startup phases when the corn and ethanol markets turned ugly in late 2008 through early 2010. They survived when many failed. They also recently went through a successful stock offering that allowed them to pay off a bridge loan as well as restructure and pay off some of their long term debt. The fact they were able to pull that off as a pure play ethanol company in today's debt market is impressive all by itself. I think $0.80 for the stock is a pretty good floor given the stock offering price and details. I also think that if they survive, no guarantees here, the stock price will definitely climb. Fundamentally this is a bit of a long term flyer, but I think it is worth the risk.

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Member Avatar SlimboJimbo (< 20) Submitted: 2/8/2011 1:06:02 PM : Outperform Start Price: $17.31 BIOF Score: -104.85

Biofuel... the way of the future, bound to explode like EEE, don't know what EEE, look that company up and you will see, this is a must buy stock

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Member Avatar SkidRowYourBoat (< 20) Submitted: 10/27/2010 12:33:34 PM : Outperform Start Price: $43.20 BIOF Score: -149.07

Ethanol is in. Now that there are US mandates....sorry oil lovers, put your emotions aside and realize this is the logical way to go.

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Member Avatar Jedson81 (98.34) Submitted: 9/19/2007 10:10:45 AM : Underperform Start Price: $139.40 BIOF Score: +133.00

Lucky for me the price jumped up enough to go above the market cap long enough for an underperform call.

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Member Avatar peacecindia (< 20) Submitted: 9/16/2007 2:55:31 PM : Outperform Start Price: $142.00 BIOF Score: -133.58

BIOF is supported by Cargill Inc. and are building ethanol plants next to Cargill's silos. BIOF will be a medium to major supplier of alternative fuel in the years to come.

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Member Avatar cashman68 (35.57) Submitted: 9/9/2007 3:07:42 AM : Outperform Start Price: $145.00 BIOF Score: -135.38

The biofuel industry is going to be big money in a few years. This company seems to be on the right track with its expansion and ties to major players- cargil. I believe given enough time and patience this company can outperform the market.

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Member Avatar Doghair101 (< 20) Submitted: 8/13/2007 11:48:54 AM : Outperform Start Price: $161.00 BIOF Score: -135.94

Bio Fuel is coming, demand will continue its all good.

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