BioFuel Energy has a market cap of $19.34 million and an enterprise value of $13.37 million. This stock trades at a reasonable valuation, with a price-to-sales of 0.05 and a price-to-book of 0.37. This company has a bit more cash on its books then debt, since its total cash position is $11.23 million and its total debt is $6.7 million.

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This company recently reported a second-quarter net loss of $4.74 million vs. a $12.4 million net loss in the year-ago period and revenue of $91 million vs. $122.8 million, which dropped 30% year over year. Clearly not a great fundamental story here, but Einhorn could be playing BIOF as a potential beneficiary of the EPA's Renewable Fuels Standard II, or RFS2, program. Basically, large oil companies could hypothetically go out and buy ethanol plants likes BIOF runs as a way to avoid the RIN regulatory tax.

Einhorn's hedge fund owns 1,427,825 shares of BIOF worth about $4.76 million. The fund increased its stake this quarter, but it's important to understand that this isn't a big position by any means, since it makes up less than 1% of his total stock portfolio.

From a technical perspective, shares of BIOF have been downtrending badly for the last five months, with the stock dropping from over $6 a share to its recent low of $3.01 a share. During that downtrend, shares of BIOF have been consistently making lower highs and lower lows, which is bearish technical price action. That said, BIOF has formed a higher low and its latest pullback with the stock finding buying interest at $3.20 a share.

Investors might want to look to get long BIOF if it can close back above its 50-day moving average of $3.64 with volume. I would like it even more with a close above its 200-day at $4.43 with volume.

One final billionaire hedge fund manger that's making moves in low-priced stocks is Tiger Management's Julian Robertson. Robertson is considered a pioneer in the hedge fund world since a number of money managers who have worked for him have gone on to create some of today's largest hedge funds. He's now retired but invests directly in other hedge funds, most run by former employees that still report 13Fs to the SEC.

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