David Einhorn (Trades, Portfolio) on Monday made a major purchase of his stock BioFuel Energy Corp, upping the position to 15,650,727 shares from 1,427,825 shares – a 996.1% increase.
The transaction makes him 49.9% owner of what was previously a shell company that operated ethanol plants. On Oct. 27, the company announced that it would acquire assets of JBGL Builder Finance LLC and JBGL Capital LP and change its name to Green Brick Partners Inc. (GRBK, Financial). As part of the deal David Einhorn (Trades, Portfolio) became chairman of the board of the new company.
“We are very pleased to help transition BioFuels Energy, the former ethanol producer, into Greek Brick Partners, a successful homebuilder,” Einhorn said in a statement. "This deal is a win-win for everyone involved and creates an exciting platform for Green Brick’s future growth.”
Homebuilding has seen the beginnings of a potential resurgence in recent months after collapsing in 2008 and spurring the financial crisis. Nationwide housing starts in September surpassed the one million mark for the third time this year, rising 6.3% to 1.017 million units, according to data from the U.S. Census Bureau. Housing starts and housing completions also climbed in October for the fifth consecutive month.
New privately owned housing starts chart:
According to the All-in-One Screener, in the past six months, the most held homebuilder stocks of gurus were DR Horton Inc. (DHI, Financial), NVR Inc. (NVR, Financial) and Lennar Corp (LEN, Financial).
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